Whether it’s to start up, operate or expand, at some stage most every business owner must find the money to make things happen. Minnesota DEED’s business financing programs help companies and communities retain existing jobs and create new high-quality jobs. Not all businesses are eligible. Qualifying businesses must meet specific job creation and wage goals. Some programs are general in nature. Others focus on targeted regions of the state, on targeted industries that show job-growth potential, and on targeted groups of people. Some incentives are offered by state government, some by local governments or other authorities.Generally, state incentives are tied to wage and job creation goals, and companies must enter into a formal business subsidy agreement to be eligible.
Tax Credits
Sales tax exemptions for 20 years on equipment for qualifying investments.
Equal to 10 percent of qualifying expenses up to $2 million for certain R&D activities.
Border Cities Enterprise Zones
Provides tax credits for business investment, development, and job creation in qualifying cities.
Tax Increment Financing
Cities, counties, and development authorities may use tax increment financing to help finance costs of real estate development to encourage developers to construct buildings or other private improvements and to pay for public improvements, such as streets, sidewalks, sewer and water, and similar public infrastructure improvements that are related to the development.
Tax Abatement
Cities, counties and school districts may use tax abatement to help finance certain economically beneficial projects. Property taxes are forgiven for a period of time to allow the project to cash flow. Or the taxes are captured for a period of time and an up-front payment is made by the political subdivision to help the project cover start up costs.
Loans, Grants, & More
Offering a maximum of $500,000 per grant, the fund focuses on industrial, manufacturing, and technology-related industries. We award grants to local units of government, which use the money to provide below-market rate loans to help companies expand. Funding may be used to purchase land, machinery and equipment.
The fund provides up to $1 million in grants to approved businesses after specified job creation and capital investment goals are achieved. Minimum requirements: 10 jobs created and $500,000 capital investment. Actual job creation and capital investment rebates are based on project parameters.
State Small Business Credit Initiative
The fund stimulates private-sector lending and improves access to capital for small businesses and manufacturers that are credit worthy but not getting loans they need to expand and create jobs. The initiative allocates up to $15.4 million into three state programs.
Small Business Development Loan Program
The program provides loans for business expansions that result in the creation of new jobs. Loans are up to $5 million.
The program supports the development of Indian-owned and operated businesses and promotes economic opportunities for Indian people in Minnesota. Loans may be up to 75 percent of project costs and feature favorable interest rates and repayment terms.
Minnesota Reservist and Veteran Business Loan Program
For companies with employees called to active duty and veterans returning from active duty.
Greater MN Job Expansion Program
Sales tax refunds for 7 years to existing businesses expanding in Greater Minnesota.
Small Business Emergency Loans
Loan program to assist small businesses directly and adversely affected by the COVID-19 pandemic.
For more information about DEED Financial Assistance visit: Minnesota DEED.