Loan Programs

We offer a few different loan options to help companies expand their operations, retain existing workers, add new workers, and expand the base of high-quality jobs throughout the state.

The Minnesota Investment Fund
This fund focuses on industrial, manufacturing, and technology-related industries. We award grants to local units of government, which use the money to provide below-market rate loans to help companies expand.

Funding may be used to purchase land, machinery and equipment.

Cities, counties, townships and recognized Indian tribal governments are eligible. All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid.

There is a maximum of $500,000 per grant. At least 50 percent of total project costs must be privately financed through owner equity and other lending sources (most applications selected for funding have at least 70 percent private financing).

Grant terms are for a maximum of 20 years for real estate and 10 years for machinery and equipment. Interest rates are negotiated.

Small Business Development Loan Program
This program provides a maximum of $5 million to any single business and generally requires that 20 percent of project costs be privately financed.

Eligible companies include 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 employees or fewer). 

Loan funds are raised through the issuance of industrial development bonds. Interest rates are the market rate for similar securities at the time bonds are sold. 

Rates are fixed for the term of the loan. Real estate loans are for a maximum of 20 years. Equipment loans are for a maximum of 10 years.

Collateral requirements include the first mortgage on real property or equipment financed under the program and personal guarantees of owners. In some cases, additional security in the form of other liens or guarantees may be required.

Bond issuance costs of 4 percent are capitalized with the loan principal, and 10 percent of bond issue must be escrowed.

These loans are made by the Minnesota Agricultural and Economic Development Board. Applications are accepted year-round but must be received by the first of each month to be considered at that month's MAEDB meeting.