Deed job creation fund

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Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses.

Published in: Business, Economy & Finance
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Deed job creation fund

  1. 1. Minnesota Job Creation Fund Minnesota’s newest economic development tool providing performance-based incentives for new and expanding businesses
  2. 2. Today we’ll discuss:  Program overview  Available Funds & Limits  Who is eligible  Application & Review Process  Awards, Agreements & Disbursements
  3. 3. Overview  $24 million biennium allocation from legislature  Program launched January, 2014  Met with 20+ groups throughout Minnesota  Designed as strategic, transparent & accountable  Pay-for-performance based incentive for business  Remains a modest tool compared to other states
  4. 4. Available Funds  Up to $1,000,000 in job creation awards and capital investment rebates for most types of projects  Up to $2,000,000 in job creation awards and capital investment rebates for large projects  Up to $1,000,000 in capital investment rebates for large investment projects that retain jobs  Funds available based on $1000-$3000 per job based on wages paid and 5-7.5% rebate depending on project location
  5. 5. Eligibility & Application  At minimum:  10 new full-time permanent jobs within two years  $500k invested in real property improvements  Support from local government  Eligibility factors, eligibility & application checklist and application at www.mn.gov/deed
  6. 6. Eligibility & Application: Website Info
  7. 7. Eligibility & Application: Website Info
  8. 8. Eligibility & Application: Website Info
  9. 9. Eligibility & Application: Website Info
  10. 10. Eligibility & Application: Website Info
  11. 11. Application Review: Scoring  Does project meet basic eligibility?  Review of economic factors:  Employment  Jobs & wages  Capital investment  Diversify or strengthen economy
  12. 12.  Review of Business Factors  Product/industry outlook  Business performance  Sales outside MN or import substitution  Financing commitment/ready to go  Other review factors:  ROI  Local government contribution Application Review: Scoring (con’t)
  13. 13. Awarding a project  Funding levels determined based on DEED’s scoring and review  “Designated” as a job creation fund business  Project can begin after designation by DEED  For example, no construction, contracts, bid-letting, permits before designation
  14. 14. Business Subsidy Agreement (BSA)  BSA signed between DEED & business  BSA outlines two-year (and other) job creation, wage & capital investment goals, funding levels, reporting requirements, etc.  Term of up to 5-7 years based on project specifics and location  Allows for funding disbursement when it makes sense to the business
  15. 15. How does a business get funds?  Invest at least $500k within one year of designation  Create at minimum 10 new full-time jobs within two years of designation  Hold jobs in place for a year  Provide documentation and complete annual reports & disbursement requests with assistance from local government
  16. 16. Other Considerations  Job Listing agreement for projects receiving $200k or more  Prevailing wage applies for projects receiving $200k or more in funds
  17. 17. Questions? Contact your Business Development Representative or, Emily Johnson, Program Manager – Job Creation Fund 651-259-7450 Emily.A.Johnson@state.mn.us http://mn.gov/deed/business/financing

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