WEDNESDAY, MAY 27, 2009

Minnesota senate considers construction stimulus bill

by Jim Brubaker
Minneapolis-St. Paul

Minnesota's state Senate has voted 56-11 to pass a bill providing $100 million in loan guarantees backing private construction projects across the state in a bid to boost the construction industry. The House is considering a similar measure.

The $100 million would be given to the Department of Employment and Economic Development from the state's general fund. DEED would do its own check of the loans in addition to the due dilligence of the banks. The state of Minnesota would guarantee 20 to 25 percent of all approved loans.

The loan guarantees are estimated to generate up to $3 billion in new construction and provide little risk to the state.

Senate President Jim Metzen, DFL-South St. Paul, authored the Senate's version of the bill.

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