Emerging Entrepreneur Loan Program

The Minnesota Emerging Entrepreneur Loan Program (ELP) supports the growth of businesses owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities. DEED provides grant funds to a network of nonprofit lenders which use these funds for loans to startup and expanding businesses throughout the state.

Indian Business Loan Program

Applicants must be enrolled members of a federally recognized Minnesota-based band or tribe. Businesses must be wholly owned by an enrolled member and can be located anywhere in the state, although the bulk of the loans are made to businesses on a reservation.

Job Creation and Workforce Training

The Minnesota Jobs Skills Partnership (MJSP) works with businesses, educational institutions and nonprofit organizations to train or retrain workers, expand work opportunities and keep high-quality jobs in the state. The goal is to target short-term training for full-time employment in the growth sectors of the state’s economy.

1. Automation Training Incentive Program

   Provides training grants of up to $35,000 to small businesses that are implementing new automation technology.

2. Job Training Incentive Program

   Provides training grants of up to $200,000 to new or expanding businesses located in Greater Minnesota.

3. Low Income Worker Training Program

   Provides grants of up to $200,000 to public, private, or nonprofit entities to help low-income people gain new skills necessary move up the career ladder to higher paying jobs and greater economic self-sufficiency.

4. Minnesota Job Creation Fund

   The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Companies deemed eligible to participate may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other property improvements. In some cases, companies may receive awards of up to $2 million.

5. Partnership Program

   Provides grants of up to $400,000 to educational Institutions that partner with businesses to develop new-job training or retraining for existing employees.

6. Pathways Program

   Provides grants of up to $400,000 to educational Institutions that partner with businesses to develop new-job training or retraining for existing employees.

Launch Minnesota Grant

Launch Minnesota is a statewide collaborative effort to accelerate the growth of startups and amplify Minnesota as a national leader in innovation. The resources will focus on innovative scalable startups. Visit mn.gov/launchmn to learn more and see the grant recipients to date.

Minnesota Innovation Loans for Entrepreneurs

Minnesota State Investment Fund

Funds are awarded to local units of government who provide loans to assist expanding businesses. Cities, counties, townships, certain development authorities and recognized Indian tribal governments are eligible for this fund. Contact Ruth Tucker at 763-717-2778 if you are interested in utilizing this program.

MN STEP Grant

The STEP program provides financial and technical assistance to qualifying Minnesota small businesses with an active interest in exporting products or services to foreign markets.

Reservist and Veteran Business loan Program

These loans are for existing small businesses that have an essential employee called to active service in the military reserves for 180 days or longer, causing a substantial economic injury to the business due to the employee's absence.

SBIR-STTR Federal Funding for High-Tech Companies

MNSBIR, Inc. helps startups and small businesses access millions from America’s Seed Fund – the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. America’s Seed Fund awards non-dilutive funding to develop your technology and chart a path toward commercialization. The federal government invests in your solution and gives you the freedom to run your business according to your vision.

Tax Credits

1. Data Center Tax Incentives

   Sales tax exemptions for 20 years on equipment for qualifying investments.

2. Research & Development Tax Incentive

   Equal to 10% of qualifying expenses up to $2 million for certain R&D activities.

3. Work Opportunity Tax Credit

   The tax credit allows employers to reduce their federal tax liability by up to $9,600 per new hire. For-profit businesses of any size qualify. 501(c) non-profits qualify for the veteran target groups only. And the tax credit applies to temporary, seasonal, part-time and full-time workers. The tax credit is available for new hires with job start dates through December 31, 2025.