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~ New initiative focuses on building rural Minnesota’s small business base ~ Saint Paul – Saying that small business is the backbone of Minnesota’s economy, Governor Tim Pawlenty today proposed a comprehensive new program to stimulate rural economic development. The initiative - Strategic Entrepreneurial Economic Development (SEED) – is designed to help strengthen communities and expand the small business base throughout Minnesota. “Investing in small business will bring lasting value and economic growth to our entire state and especially rural communities that need it most,” Governor Pawlenty said. “Companies with fewer than 100 employees account for 97 percent of the state’s businesses and generate most new jobs. SEED will help new business, existing companies, and rural communities by providing a wide variety of economic development tools that can be matched to each situation.” SEED will facilitate business development across Minnesota through 22 new or expanded programs targeting three key strategic areas: 1.) Developing and Growing Entrepreneurs - Small business success begins with solid planning, strong leaders, and access to a network of information.
2.) New Capital for Rural Businesses - SEED provides an infusion of $13.5 million to encourage entrepreneurs, fuel existing business development, and encourage private investment in Greater Minnesota.
3.) Sustained Competitive Advantage for Rural Minnesota - SEED improves community infrastructure and reinforces competitive advantages in rural Minnesota.
The Governor’s proposal calls for an investment of $20 million from the state’s general fund and another $50 million in one-time bonding. SEED will be presented to the legislature in 2008. “During eight Minnesota Competes forums throughout the state this summer, business and community leaders in Minnesota told us what they need to be successful, and we listened. SEED is a direct result of the input we received at these forums,” said Employment and Economic Development Commissioner Dan McElroy. The Department of Employment and Economic Development will manage the comprehensive set of programs that comprise SEED. SEED also emphasizes “targeted rural opportunity communities,” which are located in one of 64 Greater Minnesota counties. These counties have either experienced population decline or have unemployment rates greater than the state average. SEED follows Governor Pawlenty’s overwhelmingly successful JOBZ initiative that promotes economic development in distressed areas of Minnesota by providing local and state tax exemptions. Since its inception in 2004, JOBZ has produced 310 deals with a commitment of 4,922 new jobs and the retention of 11,672 jobs in Greater Minnesota. Total JOBZ capital investment committed is $571,744,274.28 “There are currently more than 60,000 small businesses in rural Minnesota. SEED will make strategic and significant new investments to grow that base and expand business development in rural Minnesota communities,” Governor Pawlenty said. SEED details are available at www.positivelyminnesota.com. --30-- |