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Committee hears request to replenish Entrepreneur Fund that lends to rural small businesses
Summary
Senate File 1945 would provide a $1 million one‑time appropriation to the Entrepreneur Fund for loan capital for small businesses in north and central Minnesota and several tribal nations. The CEO said state funds leverage private and federal capital and help sustain a revolving loan pool.
Senate File 19 45 was presented to the Senate Jobs and Economic Development Committee on March 3 as a one‑time $1,000,000 appropriation to the Entrepreneur Fund to support small‑business lending in north and central Minnesota and several tribal nations.
Senator Haschschild, who introduced the bill, said the fund serves many counties in northern and central Minnesota and several tribal nations and that past state appropriations have helped leverage additional lending. "The entrepreneur fund makes a big impact on small businesses in North And Central Minnesota," the sponsor said.
Sean Welsnick, introduced as the CEO of the Entrepreneur Fund, said the requested $1,000,000 would be deployed as loan capital and leveraged to attract private and federal funds: "This 1 time appropriation...we used to leverage for federal and private dollars, to bring capital back to the small businesses that we serve. So in short, this $1 we ask brings another $3 in private or federal dollars," Welsnick told the committee. He said the fund provides flexible capital, advising and education to underserved and rural entrepreneurs and typically deploys 150–350 loans annually with average loan size under $100,000.
Welsnick said the appropriation functions as revolving capital: the organization has historically used state allocations to demonstrate state backing and to attract additional private commitments. He told the committee the fund had not yet received prior year state funds at the time of the hearing because of administrative processing, but that commitments from private creditors last year added roughly $8,000,000 in loan capital that will also be deployed.
Committee members asked for more detail on operational finances, the entrepreneur fund's 990 and how many people benefited from prior state support. Welsnick said he would provide additional documents, including the organization’s 990, and stated the $1,000,000 in state funds typically leverages about $3–4 in outside capital, producing roughly 40 loans if average loan size is near $100,000; the appropriation is expected to revolve and be reused for new loans.
Senate File 19 45 was laid on the table for possible inclusion.
