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 loans through the issuance of tax-exempt industrial development bonds backed by a state-funded reserve of 25 percent; and direct loans.

Customers and Services
Eligible applicants are manufacturing and industrial businesses located or intending to locate in Minnesota, as defined by Small Business Administration size and eligibility standards (generally, those with 500 or fewer 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 development costs such as engineering, legal, and financial fees. 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.

Also, MAEDB has authority to issue conduit revenue bonds for "501 (C) (3)" nonprofit corporations. Eligible applicants typically have several locations in Minnesota where money is being invested and the MAEDB offers an efficient mechanism to act as an issuer. During the past state fiscal year, MAEDB issued one transaction, for $262,055,000. These conduit bonds are separate from the business loan program and are not included in the table below.

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

Funding Source and Expenditure (in thousands)

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 January 2010.