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

2. Today we’ll discuss: Program overview Available Funds & Limits Who is eligible Application & Review Process Awards, Agreements & Disbursements

3. Overview $24 million biennium allocation from legislature Program launched January, 2014 Designed as strategic, transparent & accountable Pay-for-performance based incentive for business Remains a modest tool compared to other states

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 7.5% rebate on qualified costs

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/deedwww.mn.gov/deed

6. Application Review: Scoring Does project meet basic eligibility? Review of economic factors: Employment Jobs & wages Capital investment Diversify or strengthen economy

7. 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 (cont)

8. 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

9. 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 7 years in Greater MN Allows for funding disbursement when it makes sense to the business

10. 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

11. Other Considerations Job Listing agreement for projects receiving $200k or more Prevailing wage applies for projects receiving $200k or more in funds Rulemaking

12. Questions? Contact: Heather Rand, Business Development Representative 218-302-8408 Heather.Rand@state.mn.us Emily Johnson, Program Manager 651-259-7450 Emily.A.Johnson@state.mn.us http://mn.gov/deed/business/financing