A bill introduced today in the Minnesota Senate would expand financial support for cannabis microbusinesses by increasing state-backed loan amounts and streamlining approval processes.
Senate File 1449, sponsored by State Senators Aric Putnam and Lindsey Port, was referred to the Senate Jobs and Economic Development Committee upon introduction. The bill proposes raising the maximum state contribution to cannabis microbusiness loans from $50,000 to $75,000, and from $150,000 to $200,000 if matched by private investment. It also mandates that loan applications receive a final decision within 30 days, with applicants notified within 14 days if additional information is needed.
The legislation allows microbusinesses to renew loans annually for up to six years and permits partial or full forgiveness of loan interest or principal for borrowers who meet all requirements and stay current on payments for at least three years. Additionally, nonprofit organizations administering the loan program would be allowed to retain interest payments to cover operational costs, and they must publicly report average interest rates twice a year.
The bill also includes grant funding for organizations that provide technical assistance to cannabis entrepreneurs, particularly social equity applicants. Nonprofits managing these grants could use up to 15% of contract funds for administrative expenses.
With its referral to the Senate Jobs and Economic Development Committee, the next steps for SF 1449 is for a public hearing to be scheduled, if the chair of the committee allows it.
