Small Business Development Loan Program - Annual Program Summary
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.
Measures - Reporting period is state fiscal year (SFY), July 1 - June 30
SFY 2005 |
SFY 2006 |
SFY 2007 |
|
| Number of projects | 4 |
4 |
2 |
| Loan amounts | $565,000 |
$1,385,000 |
$185,000 |
| Number of jobs created or retained | 85 |
212 |
18 |
Funding Source and Allocation
This is a revolving loan program; the funding source is revenue bond proceeds. MAEDB provides direct loans or loan guarantees, or participates with private financial institutions on business loans.
Statutory Authority
-- Minnesota Statutes, Chapter 41A.036
Contact Information
Brad Simenson, Senior Loan Officer
Phone: 651.259.7428 or toll-free: 800.657.3858
E-mail: Bradley.Simenson@state.mn.us
Website: www.deed.state.mn.us/bizdev/SBDLn/
This information current as of January 2008. For more information on DEED programs, see the State of Minnesota budget pages.