Finding A Business Loan In Minnesota

Minnesota offers ample business opportunities in a conducive business environment. A lot of financing schemes of various types are available for the businesses to meet their business needs. The Minnesota Department of Employment and Economic Development administer these financing schemes.

Financing Schemes in Minnesota:

Minnesota Investment Fund: Features
The loan funds the projects leading to create quality job opportunities in the state.

1) The loan funds manufacturing and technology-driven industrial businesses.

Eligibility:

The loan is granted to local government units financing business expansion projects.
Loan Use: Loan can be used to:

1) Purchase property, equipment and machinery.

2) Infrastructure development.

3) Fund the training of the businesses based in Minnesota or planning to base.
Prohibited loan use: The loan cannot be used to fund:

1) Working capital.

2) Retail businesses.

3) Industrial park development.

Small Business Development Loan Program: Features

1) The loan is granted for the expansion needs of the businesses resulting in increased job opportunities.

2) Minnesota Agricultural and Economic Development Board (MAEDB) extend the loan.

The loan is extended using industrial development bonds coupled with twenty-five percent state funds reserve.

Eligibility:

1) Those planning to locate in Minnesota or Minnesota based manufacturing units and industrial businesses.

2) The size of these businesses should comply with that mentioned by Small Business Administration.

3) The loan investment must lead to an increase in the number of employment opportunities in the business house availing the loan.

Loan use: The loan can be used to:

1) Acquire property that is, land or building.

2) Purchase machinery and equipment.

3) Construct or modify a building.

4) Pay development fees.

Prohibition of loan use: You cannot use the loan to:

1) Leverage working capital.

2) Refinance.

Urban Initiative Loan Program: Features

1) The loan funds working capital and fixed assets of the minority owned businesses based in Minnesota or planning to base.

2) Businesses aiming to extend jobs to the weaker sections of the Twin Cities can also apply.

Loan Use: Loan can be used to finance a start-up or expanding business.

Prohibited loan use: The loan cannot be used to refinance.

Indian Business Loan Program: Features

1) This loan aims to fund the businesses owned by the Indians or if the businesses are of Indian origin.

2) The loan also aims to support economic development of Native Americans in Minnesota.
3) The relevant tribal council approves the loan.

4) The Department of Employment and Economic Development of Minnesota administers the loan processing.

5) The sanctioned loan amount may be up to a maximum seventy-five percent of the project's cost outlay.

Eligibility

1) The applicant must be a member of a federally recognized; Minnesota based band or tribe.

2) The business must be located in Minnesota.

Loan Use: The loan can be used to fund a business start-up or expansion.
Prohibition of loan use: The loan amount cannot be used for refinancing.

The ready availability of easy financing at Minnesota has improved the state's long term economic outlook.

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