Looking at recent articles, we’ve seen some good information on the economic front:

Minnesota manufactures have reached 21 straight months of growth and the outlook for Minnesota’s job growth in general is upbeat.

Some of the business expansions happening across Minnesota are thanks to the economic development investments signed into law by Gov. Dayton in 2013. One of these tools is the “Minnesota Job Creation Fund.” Here are some numbers to know:

• 17-to-1 return on investment– The $12 million allocated from the Job Creation Fund thus far have helped produce $224.5 million in private economic development – an 17-to-1 return on the state’s investment.
• $24 Million – In 2013, Governor Dayton and the Minnesota Legislature invested $24 million in the Minnesota Job Creation Fund – a pay-for-performance economic development incentive tool that helps companies expand and locate in Minnesota.
• 20 Companies – Already, 20 companies have benefitted from the program, announcing plans to expand their operations around the state. More companies are expected to qualify for and benefit from the Job Creation Fund in the coming months.
• 1,300 Jobs – Expansions announced already will create an expected 1,300 new jobs.

Additional economic development tools include:

• Minnesota Investment Fund (MIF) – Gov. Dayton invested $30 million of ongoing funding in the Minnesota Investment Fund in 2013. This investment is expected to leverage over $600 million in additional private investment and help create 3,400 new jobs. MIF is an initiative that provides competitive loans to:
  • Help encourage local firms that have options outside the state to expand here.
  • Provide incentives for firms outside Minnesota to locate in our state.

• Angel Tax Credit Program – The Governor invested $46.6 million in the Angel Tax Credit Program. Minnesota’s Angel Tax Credit provides a 25 percent credit to investors or investment funds that put money into startup companies focused on high technology or new proprietary technology. The Governor’s new investment in this program will leverage $188 million in private investment and help create 330 new jobs.

• Angel Loan Fund – Gov. Dayton invested $6.7 million in a new Angel Loan Fund. The program provides a new funding option for businesses certified to participate in Minnesota’s Angel Tax Credit Program. It provides a direct loan for 10 percent of the total amount of equity investment received in the business’ approved funding round. This new investment will leverage $67 million in additional private investment and help create 3,000 jobs.

• Housing and Job Growth Initiative – The Governor invested $10 million in the Housing and Job Growth Initiative, building affordable housing to support business expansion in Greater Minnesota Communities. This investment is expected to help create 400 new jobs.

• Global Competitiveness Initiative – Gov. Dayton invested $1.5 million in this initiative to help grow our state’s exports, connect local businesses with global trade opportunities, and attract foreign direct investment in Minnesota’s economy. This initiative will:
  • Establish three new trade offices in foreign markets.
  • Help small businesses participate in trade activities.
  • Better-communicate the benefits of doing business in Minnesota. It is expected to help create an estimated 500 jobs.

• Transportation Economic Development Initiative (TED) – The Governor invested $10 million in TED, which funds road and bridge improvements that promote economic development. The initiative provides state support (up to 70 percent of construction costs) to leverage local and private investment for transportation infrastructure projects. This investment is expected to help create 5,000 new jobs.

• Marketing Minnesota tourism – Tourism accounts for nearly $12 billion in annual sales every year, supporting more than 240,000 jobs in our state (11 percent of all private sector employment in Minnesota). Every $1 invested in Explore Minnesota Tourism marketing efforts delivers an $8 return in state and local tax revenue. But current funding for tourism marketing is trailing neighboring states, including Wisconsin. To boost Minnesota’s growing tourism industry, Gov. Dayton invested another $11 million in Explore Minnesota Tourism to expand its marketing efforts. This initiative is expected to create 7,700 new jobs.

• Supporting Minnesota solar companies – Minnesota is home to more than 100 solar energy businesses. In 2013, the Governor and Legislature created a new solar energy standard that will help give a boost to local solar manufacturers and installers. The new standard requires 1.5 percent of all electricity in the state to be solar-generated by 2020, with a goal of 10 percent by 2030. This initiative is expected to help create 2,200 new jobs.

• Redeveloping blighted properties for commercial use – Gov. Dayton invested $9.6 million in funding for the Department of Employment and Economic Development’s (DEED) Redevelopment Account. This account provides grants to local units of government for the redevelopment of old factory sites and other blighted properties. These grants are expected to help businesses develop the property, leverage $483 million in private investment, put the property to productive use, and create an estimated 1,900 jobs.

• Contamination Cleanup Grants – The Governor invested $25.4 million in DEED’s Contamination Cleanup Grants. This initiative helps communities pay for assessing and cleaning up contaminated sites for private or public redevelopment. This new investment will leverage $1.4 billion in private investment and help create an estimated 5,300 new jobs.

• State Small Business Credit Initiative – Gov. Dayton invested $4.7 million in the State Small Business Credit Initiative (SSBCI). The initiative uses federal funding to stimulate private-sector lending and improve access to capital for small businesses and manufacturers that are credit worthy but not getting loans they need to expand and create jobs. The Governor’s new investment in this program will leverage $75 million in additional private investment and help create 1,900 new jobs.

• Infrastructure grants – The Governor invested $6.1 million in infrastructure grants. The Greater Minnesota Business Development Infrastructure Grant Program helps stimulate new economic development, create new jobs and retains existing jobs through investments in public infrastructure. It provides grants to cities of up to 50 percent of the capital costs of the public infrastructure necessary to expand or retain jobs in the area, increase the tax base, or expand or create new economic development. This new investment will leverage $116 million in private investment and help create 800 jobs.

• Helping manufacturing companies expand and hire new workers – The Growth Acceleration Program (GAP) at Enterprise Minnesota provides gap financing to Minnesota manufacturing companies that are seeking to grow. Since 2007, GAP has leveraged millions of dollars in private investment and created thousands of jobs in Minnesota. In 2013, the Governor invested an additional $750,000 in the program. This new investment is expected to help create 1,000 jobs.

Sounds pretty good to us. And, nothing like that meme that the GOP keeps pushing the Democrats are bad for the economy and business.

Minnesota economic recover

<< Daily Brief: Tuesday, Sept. 16, 2014

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