REGIONAL— Small businesses in Minnesota have a new opportunity to grow, thanks to a $33 million boost in funding through the state’s Department of Employment and Economic Development. The new round of loans is expected to support 225 new or expanding businesses statewide.
The funding comes from the federal State Small Business Credit Initiative, part of the American Rescue Plan. This is the second of three rounds of SSBCI funding coming to Minnesota, with a total of $97 million expected.
“Small businesses are job creators that fuel innovation and strengthen our communities,” said Gov. Tim Walz. “With this funding, we’ll partner with hundreds of new small businesses to ensure they have the funding they need to get started.”
DEED Commissioner Matt Varilek emphasized the central role of small businesses in the state’s economy.
“Small business drives Minnesota’s economy in every corner of our state,” Varilek said. “With this initiative, we are continuing to invest in the small businesses that call Minnesota home.”
The new funding will support six different loan and investment programs:
Automation Loan Participation Program – Low-interest loans up to $500,000 for businesses in manufacturing, distribution, technology, and warehousing.
Growth Loan Fund – Loans up to $400,000 for early-stage tech businesses seeking equity investments.
Minnesota Loan Guarantee Program – Loan guarantees up to $800,000 for approved lenders.
Small Business Loan Participation Program – DEED buys participations from $10,000 to $250,000 in loans made by nonprofit and community lenders.
Direct Investment Venture Capital – Seed and early-stage venture capital investments.
&Multi-Fund Venture Capital – Investment in funds supporting startups in manufacturing, agtech, climate tech, software, and life sciences.
More information about the loan programs, including how to apply or connect with an approved lender, is available on DEED’s SSBCI website at: https://mn.gov/deed/business/financing-business/deed-programs/ssbci/.