Small Business Development Loan Program

Purpose
This program provides loans that create jobs and expand businesses. The Minnesota Agricultural and Economic Development Board (MAEDB) makes small business direct loans and loans through the issuance of tax-exempt industrial development bonds backed by a state-funded reserve of 25 percent.

Customers and Services
Eligible applicants are generally manufacturing and industrial small businesses (less than 500 employees). New capital investment must result in a significant number of new jobs and other beneficial economic impacts. Eligible costs include acquisition of land, building, machinery and equipment; building construction and renovations; and certain development costs. Loans up to a maximum of $5 million may be made for any one business.

Generally, 20 percent of the project costs must be privately financed through equity or other sources. MAEDB also issues conduit revenue bonds for "501 (C) (3)" nonprofit corporations. Eligible applicants should have more than one Minnesota location receiving bond proceeds to ensure MAEDB offers a cost-effective mechanism as issuer. These bonds are separate from the loan program and are not included in the table below. During the past SFY, MAEDB issued two transactions for $33.5M.

Measures - Reporting period is state fiscal year (SFY), July 1 - June 30

*Includes assistance for disaster recovery.

More DEED measures: Uniform Program Accountability Measures

Funding Source and Expenditure (in thousands)

*Represents costs related to administering previously issued bonds.

Statutory Authority
-- Minn. Stat., Chap. 41A.036

Contact Information
Bradley Simenson, Senior Loan Officer
Phone: 651.259.7428 or toll-free: 800.657.3858; TTY: 651.296.3900

This information current as of December 2011.