Economic development fund could be reimbursed after COVID-19 pandemic

Money taken from the Minnesota 21st Century Fund to address problems caused by the COVID-19 pandemic could be repaid, allowing it to continue making economic development investments in the future.  

HF4603, as amended, would make changes needed to pay back the fund whenever there’s a budget surplus or through loan repayment, said Rep. Rob Ecklund (DFL-International Falls), who sponsors the bill.

It was approved by the House Jobs and Economic Development Finance Division Friday morning and referred to the House Ways and Means Committee.

There is no companion, but the Senate is working on similar efforts, Ecklund said.

It would be a “long haul” to pay back the fund, but by reimbursing it up to $5 million a year until the fund reaches $20 million, it could remain available for future economic development initiatives in northeast Minnesota, Ecklund said.

The fund makes loans or equity investments in projects located in the taconite relief tax area and makes grants for public infrastructure.

The state’s small business emergency loan program tapped $20 million from the fund to provide relief to small businesses during the COVID-19 peacetime emergency.