Pawlenty outlines small business assistance plan

09/25/2007

Associated Press
September 25, 2007


Gov. Tim Pawlenty today outlined his Strategic Entrepreneurial Economic Development (SEED) program, a combination of tax credits, loans, grants and other assistance to foster new small businesses in rural Minnesota.

Pawlenty wouldn't estimate how many jobs he expects to result from the program, saying it could take several years to play out.

"If we get enough entrepreneurs started in areas of the state where they need jobs and economic investment, good things will happen,'' Pawlenty said.

He'll ask the 2008 Legislature to approve SEED and pay for it with $20 million from the state's general treasury and another $50 million in borrowing.

A share of the money would be used to pump up existing programs and some of it would establish new ones. For instance, the state would create a new tax credit for private investors in new enterprises.

The program would be aimed mostly at 64 counties that have experienced population decline or higher unemployment rates than the state average. But it wouldn't be exclusive to those counties, said Dan McElroy, the Department of Employment and Economic Development's commissioner.

In 2003, Pawlenty established the JOBZ tax break program for larger businesses that expanded or located in distressed regions. The program he announced would extend the eligibility window for businesses in certain areas.