Agenda - Council Work Session - 04/11/2023

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HF100 NINTH ENGROSSMENT REVISOR BD 1-10100-9 139.1 (f) If the borrower has met lender criteria, including being current with all payments for 139.2 a minimum of three years, the office may approve either full or partial forgiveness of interest 139.3 or principal amounts. 139.4 Subd. 6. Revolving loan account administration. (a) The office shall establish a 139.5 minimum interest rate for loans or guarantees to ensure that necessary loan administration 139.6 costs are covered. The interest rate charged by a nonprofit corporation for a loan under this 139.7 section must not exceed the Wall Street Journal prime rate. For a loan under this section, 139.8 the nonprofit corporation may charge a loan origination fee equal to or less than one percent 139.9 of the loan value. The nonprofit corporation may retain the amount of the origination fee. 139.10 (b) Loan repayment of principal must be paid to the office for deposit in the revolving 139.11 loan account. Loan interest payments must be deposited in a revolving loan account created 139.12 by the nonprofit corporation originating the loan being repaid for further distribution or use, 139.13 consistent with the criteria of this section. 139.14 (c) Administrative expenses of the nonprofit corporations with whom the office enters 139.15 into agreements, including expenses incurred by a nonprofit corporation in providing 139.16 financial, technical, managerial, and marketing assistance to a business receiving a loan 139.17 under this section, are eligible program expenses that the office may agree to pay under the 139.18 grant agreement. 139.19 Subd. 7. Program outreach. The office shall make extensive efforts to publicize these 139.20 grants, including through partnerships with community organizations, particularly those 139.21 located in areas where long-term residents are eligible to be social equity applicants. 139.22 Subd. 8. Reporting requirements. (a) A nonprofit corporation that receives a grant 139.23 under subdivision 4 shall: 139.24 (1) submit an annual report to the office by January 15 of each year that the nonprofit 139.25 corporation participates in the program that includes a description of agricultural businesses 139.26 supported by the grant program, an account of loans made during the calendar year, the 139.27 program's impact on farmers' ability to expand into the legal cannabis industry, the source 139.28 and amount of money collected and distributed by the program, the program's assets and 139.29 liabilities, and an explanation of administrative expenses; and 139.30 (2) provide for an independent annual audit to be performed in accordance with generally 13 9.3 1 accepted accounting practices and auditing standards and submit a copy of each annual 139.32 audit report to the office. Article 1 Sec. 70. 139