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GREATER MSP staff works with businesses considering a location or expansion in the region, drawing on a range of private and public financing options. GREATER MSP has the relationships and expertise to connect businesses with venture capital resources, private sources of capital and financing, and federal, state and local government financing and incentive programs.
Minnesota placed 13th nationally in the amount of venture capital under management – $1.323 billion in 2010, according the National Venture Capital Association. It ranked 20th in total VC investments that year – $140 million in 26 deals. Minnesota leads the Midwest in heath care start-up investments.
The Minnesota Department of Employment and Economic Development (Minnesota DEED) offers numerous financing programs designed to help Greater MSP companies retain jobs or create new jobs:
Angel Tax Credit
State Small Business Credit Initiative
Minnesota Investment Fund
Small Business Development Loan Program
Urban Initiative Loan Program
Indian Business Loan Program
Minnesota Reservist and Veteran Business Loan Program
Rebates and low-interest loans are available through communities and utilities to help businesses invest in cost-effective energy improvements to their buildings and equipment.
The Minnesota Jobs Skills Partnership works with businesses and schools to train or retrain workers, expand opportunities, and keep high-quality jobs in the Greater MSP region. Grants of up to $400,000 are awarded to educational institutions that partner with Twin Cities businesses to develop job training or retraining. All training projects pair each business with at least one accredited Minnesota educational institution. Five different customized training grants cater to the specific skill needs of Greater MSP employers.
Minnesota’s Growth Acceleration Program consults with small manufacturers to help them become more efficient, more competitive, and more likely to thrive. The program provides matching grants of up to $50,000.
Cities and counties may be able to provide incentives for qualifying projects in their jurisdictions. Some communities have revolving loan funds. Certain projects may qualify for TIF or tax abatement support.
The US Small Business Administration provides programs to help small businesses prosper – including financial and federal contract procurement assistance, management assistance, and specialized outreach to women, minorities and veterans.
The federal SBIR Program provides grants to companies in the critical start-up and development stages. Each year, 11 departments and agencies set aside a portion of their R&D funds to help small businesses compete with larger, more established companies.
The Greater MSP region also offers a variety of small business development resources.
New and expanding businesses may place additional demands on public infrastructure. The Minnesota Public Facilities Authority administers several revolving loan funds to help local governments construct and upgrade public infrastructure to support the needs of new and expanding businesses.
Clean Water Revolving Fund provides below-market financing to local governments to upgrade and construct wastewater treatment and collection facilities.
Wastewater Infrastructure Fund provides supplemental assistance to local governments for high-cost wastewater treatment projects. Grants are available to implement Total Maximum Daily Load plans and phosphorus reduction projects.
Small Community Wastewater Treatment Program provides loans and grants to local governments to replace and install individual sewage treatment systems.
Drinking Water Revolving Fund provides below-market financing to local governments and other public-water suppliers to upgrade and construct drinking water treatment, distribution and storage facilities.
Transportation Revolving Loan Fund provides below-market financing to local governments and the Minnesota Department of Transportation (MnDOT) for transportation-related projects.
A wide variety of tax incentives and financial assistance is available to help companies start up, expand, and relocate in the Greater MSP region. Incentives offered by the State of Minnesota generally are tied to wage and job creation goals. Incentives available through local governments are designed to enhance their communities and produce jobs.
Tax increment financing (TIF) is used by Greater MSP cities and counties to induce a development or redevelopment that otherwise would not occur. It can be used to write down land cost, pay for site improvements, and finance public infrastructure related to redevelopment or new development.
Tax abatement is also used by cities, counties, and school districts to support economic development. Abatement has fewer legal requirements and is more flexible than TIF.
The Value Added Grant Program, administered by the Minnesota Department of Agriculture (MDA), can help a business entity take the next step in their safety or business plan. These steps may include: producing a new product, entering a new market (such as schools, restaurants or out of state), upgrading an agricultural processing facility to increase production or marketing, or initiating a business that adds value to a Minnesota agricultural product. The grant application is completed and submitted through MDA's online system at www.mda.state.mn.us/grants/grants/valueaddedgrant.aspx.
Are you a company with $1 Million in revenue looking for customized information and guidance to help your company grow? Apply for an Economic Gardening grant and open up the possibilities. More information is available here.
400 Robert Street North, Suite 1600
Saint Paul, MN 55101