Eligible companies must also have products or services that are appropriate for the target market, must agree to participate in surveys and provide information on program outcomes, and must apply through the Minnesota Trade Office (MTO), which administers the program in the state.
State Small Business Credit Initiative (SSBCI) SSBCI.DEED@state.mn.us Minnesota Loan Guarantee Program
DEED provides 80 percent loan guarantee for qualified loans made by enrolled lenders. Guarantees up to $800,000 with a .25 percent guarantee fee on loans enrolled by banks, credit unions, CFDIs, and other non-profit lenders. Businesses apply directly with the enrolled lenders. Lenders are responsible for setting loan terms. Eligibility New or existing Minnesota-based small businesses that are eligible under SSBCI guidelines and are using funds for eligible business purposes, including working capital and start-up costs. Growth Loan Funds DEED will offer 1 percent, 7 year term loans to businesses raising up to $2,000,000 in equity. The business must be planning to raise equity in order to qualify. The applicant will state how much equity they intend to raise, then have 12 months to do so. If the equity goal is reached, the approved loan amount will be based on 20% of the total amount of equity investment raised in the funding round. Any investments done before the defined 12-month period do not qualify. Loans range from $100,000 to $400,000. Loans range from $100,000 to $400,000. Eligibility Minnesota-based early-stage businesses that have raised less than $250,000 or slightly later- stage businesses that are not yet ready for a Series A round. Funds are to be used for an eligible business purpose, including start-up costs, working capital, equipment, inventory, services used in the production of the business's goods or services, or tenant improvements. Funds may not be used for passive real estate or to repay any previous investment made in the business, including capital contributed by founders. Automation Loan Participation Program Companion loans to bank financing of up to $500,000 for automation equipment purchased by manufacturing, distribution, technology and warehousing businesses. Loans up to $500,000, 5- to 7-year term, 1 percent interest rate. Private financing match required.
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