SEEDs of Development

Gov. Tim Pawlenty last week unveiled a plan to use $50 million in borrowing and $20 million from the state’s general fund to help spur more economic development in Minnesota’s rural areas by promoting and expanding small businesses and entrepreneurship. Debt proceeds, loans, and tax credits will primarily be targeted to counties that have either lost population or have unemployment rates higher than the state average. The debt would finance infrastructure improvements. The governor plans to ask lawmakers to approve the plan — called the strategic entrepreneurial economic development, or SEED, program — during their next legislative session that begins early in 2008. “Investing in small business will bring lasting value and economic growth to our entire state and especially rural communities that need it most,” Pawlenty said in a statement. Companies with fewer than 100 employees account for 97% of the state’s businesses and generate the most new jobs, he added. SEED is aimed at stimulating new small business development and helping existing companies with a focus on rural areas. “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,” Employment and Economic Development Commissioner Dan McElroy said in the statement.