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Reality Check: Emmer's Model Business Got Stimulus

A company that Republican governor candidate Tom Emmer highlighted in a campaign appearance on Monday got federal stimulus help. Emmer has called stimulus packages a "phony" way to generate business.

The Emmer for Governor Campaign made Permac Industries a poster child for a model Minnesota small business.

Permac owner Darlene Miller told reporters: "We have not received any federal stimulus money or employees whatsoever through that program."

But that's not completely accurate.

Permac Industries DID receive federal stimulus funds under President George W. Bush.

An April 2008 White House press release said Permac would use federal funds to purchase equipment and hire at least five workers.

According to the Bush White House then: "As a result of the stimulus package, Permac Industries – a manufacturing company in Minnesota – will purchase much of their equipment to fill their recently doubled manufacturing space this year. Owner Darlene Miller expects these investments to expand manufacturing capacity by 25 percent, and plans to hire at least five more workers."


Permac also benefits from the Obama stimulus, employing workers this year whose wages were paid by stimulus funds, according the Minnesota's Department of Economic Development.

According to DEED Spokeswoman Kirsten Morrell:

"The program is called TANF Emergency Fund. Minnesota DEED and Dept. of Human Services received a $6 million grant to administer this program jointly. This is stimulus funding. The program provides wage subsidies for public and private-sector companies to hire people with limited skills and job prospects (mainly people on public assistance / MFIP). The program does not provide training – just wage subsidies. This program ends on Sept. 30, 2010."

Permac said it hired one of those workers permanently. When reporters persisted, asking questions about stimulus funding, Emmer cut off the press conference.

That's Reality Check.

To check the resources of this Reality Check, click on the links below:

Emmer for Governor Campaign
The George W. Bush White House: Small Business
Minnesota's Department of Economic Development

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