There’s more to Minnesota than snowy winters and crystal clear lakes—this state boasts a vibrant economy that is friendly to small businesses. In fact, over half the state’s workforce is employed by small businesses, making entrepreneurs a vital part of the landscape. If you run a business in the North Star state, you may be eligible for one of the small business loans and grants listed below. Read through to discover if you qualify.
Department or Agency: Minnesota Department of Employment and Economic Development (DEED)
Loan or Grant title: Emerging Entrepreneur Loan Program
The Emerging Entrepreneur Loan Program (ELP) provides funds to nonprofit lenders, which then loan the money to businesses owned and operated by minorities, women, veterans, or people who are low-income or disabled. To qualify, your business must operate in Minnesota. DEED will provide funds between $5,000 and $150,000 per project.
Department or Agency: Minnesota Department of Employment and Economic Development (DEED)
Loan or Grant title: Minnesota Job Creation Fund
This program provides awards of up to $1 million ($2 million in some cases) for companies that engage in manufacturing, warehousing, distribution, and some IT operations. To qualify, the business must fulfill certain requirements, such as creating at least 10 new full-time permanent jobs within two years of receiving the award. Funds can be used to:
- Create or retain high-paying jobs
- Build or renovate facilities
- Make other property improvements
Department or Agency: Minnesota Department of Employment and Economic Development (DEED)
Loan or Grant title: Indian Business Loan Program
This program provides business loans to Native Americans based in Minnesota. To qualify, the business owner must be an enrolled member of a federally recognized band or tribe in the state. The business can be located anywhere in the state, but most loans are made to businesses on reservations.
Department or Agency: Launch Minnesota
Loan or Grant title: Innovation Grant
Launch Minnesota offers innovation grants for technology-centered businesses across Minnesota. The grants are available for up to $35,000 to pay for research and development, direct business expenses, and technical assistance. To qualify, the business must:
- Be involved in innovative technology
- Be located in Minnesota
- Be in operation for fewer than 10 years
- Have less than $1 million in equity financing
- Not have previously received a Launch Minnesota Innovation Grant
Department or Agency: Launch Minnesota
Loan or Grant title: Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Matching Grant
Launch Minnesota offers SBIR/STTR matching grants to eligible first-time Phase I and Phase II awardees. The award amount is based on the business’s federal award. To qualify, the business will need to:
- Register with the Minnesota SBIR/STTR (MNSBIR) Accelerator
- Show it won federal SBIR/STTR funding after July 1, 2022, and have at least 120 days remaining in the project period upon application submission
- Be located in Minnesota
