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Financing & Incentives

There are plenty of options in Greater Mankato to help reach your business goals.You can find a full listing of services provided by Minnesota DEED at this link Locate & Expand your Business / Join Us MN.


The City of Mankato has two census tracts designated as Federal Opportunity Zones.


These “O-Zones” are an economic development tool as well as a tax deferral opportunity on capital gains. It was established by Congress in the Tax Cut and Jobs Act of 2017 to encourage long-term investments in low-income sections of our communities.

Both Opportunity Zones

Both Opportunity Zones

Opportunity Zone 27013170300

Opportunity Zone 27013170300

Opportunity Zone 227013170700

Opportunity Zone 227013170700

^^ Click on the maps for larger view ^^


  • 27013170300 – This area In the northern part of the city offers multifamily housing, industrial and commercial investment opportunities, including the Old Town area with the new Center for Innovation and Entrepreneurship. It has great access from U.S. 14 and Minnesota Highway 169. This area is part of the Old Town Master Plan
  • 227013170700 – This area in the southwest portion of the city includes the Sibley Park redevelopment project where a substantial amount of investment is already underway with commercial and multifamily housing opportunities.

Both areas are part of the City Center Renaissance Plan


Talk with your financial advisor to see if this opportunity fits with your goals.

For more information about the Mankato area, email Ryan Vesey.


Tax Incentives

Greater MN Job Expansion Program
The Greater MN Job Expansion Program provides sales tax refunds on purchases of property and services to businesses located in Greater Minnesota that increase employment. The Greater MN Job Expansion Program provides each qualifying business up to $2 million annually in sales tax refunds and could benefit your business if you plan on adding as few as two employees in the next year. Click here to visit the Greater MN Job Expansion Program page on the MN DEED website. 

Minnesota Angel Investment Tax Credit
The Minnesota Angel Tax Credit Program helps emerging businesses raise the equity capital they need to grow and prosper.  Changes in the program, starting in January 2015, will be especially beneficial to businesses that are women-owned and minority-owned, and to businesses located in Greater Minnesota.  The Angel Tax Credit Program provides a 25% credit to investors or investment funds that invest in qualified start-up businesses.  The credit makes it easier to businesses to attract investors.  The 2015 program will reserve $7.5 million in credits, enough for $30 million in investment, for investments in businesses owned by women or minorities or are headquartered outside the seven-county Twin Cities area.  In 2014, all the angel tax credits were used in the first seven weeks of the year; this change gives these businesses a better chance to make use of the program.  Qualified businesses are primarily high-tech or ones developing a new proprietary technology or product or process (note: retail business are specifically excluded). DEED website.   Businesses  |  Investors

Research and Development (R&D) Tax Credit
Minnesota's new-and-improved research and development tax credit doubled and is inclusive to more business entities.  Individuals involved in partnerships, S-corporations and limited liability companies may claim the credit against their individual income taxes. The tax credit for R&D expenditures is 10 percent, up to the first $2 million in eligible expenses. The credit is 2.5 percent for eligible expenses above $2 million.   More info

Small Business Health Care Tax Credit
Healthcare insurance is a significant expenditure for small businesses. To offset the cost of health care insurance, the IRS is offering a credit.  See if your business qualifies.

Tax Increment Financing (TIF)
Finances the costs of a new real estate development by utilizing funds gained through increased property taxes generated from the development.

PACE (Property Assessed Clean Energy )

PACE is a financing tool used to assist commercial and industrial businesses (including agribusiness) with improvements that substantially increase energy efficiency.  PACE allows businesses to make these fixture improvements without the up-front capital outlay. Costs for the improvements are paid back through a special assessment on their taxes. The increase in property taxes is offset by the decrease in energy costs so that the business sees no change in the bottom line. 



Minnesota Department of Commerce, Division of Energy Resources produces a list of state and federal funding opportunities on a regular basis. The list includes solicitations of proposals for energy or environmental grant funding or other incentives from a wide variety of organizations.

Minnesota Job Creation Fund

The fund provides up to $1 million in grants to approved business after specified job creation and capital investment goals are achieved. Minimum requirements: 10 jobs created and $500,0000 capital investment. Actual job creation and investment rebates are based on project parameters.

Minnesota Job Skills Partnership
Provides state grants to educational institutions for the development of training programs that meet specific business needs. The board also operates the Higher Education Loan Program (HELP), through which businesses may be awarded an interest-free loan to pay for worker training, and operates the Pathways Program, which provides grants for the development of training programs for individuals transitioning from public assistance to work.

US Department of Agriculture

The US Department of Agriculture offers a variety of grant opportunities related to renewable energy, bioenergy, energy audits and much more.  Visit their website regularly to view current grant opportunities available to private and non-profit organizations. Contact Naomi Lenz with questions 507-437-8247 Extension 127 | Naomi.Lenz@MN.usda.gov

Contact: 651.632.2143 or bjohnson@rainsourcecapital.com

Equity Financing

AngelPool Syndications
Businesses seeking angel financing interested in the opportunity to present to angel groups in the region at no charge are encouraged to visit AngelPool. This resources is designed to get companies in front of investors. more info

Minnesota Angel Network

Minnesota Angel Network (MNAN) was formed to promote a more active angel investment community in our state.  MNAN educates entrepreneurs about preparations required to obtain investment capital and facilitates connections between angel investors looking to make investments and businesses that are seeking angel investment.  MNAN assists companies in all major sectors of business, including but not limited to medtech, high tech, and cleantech. Involvement with MNAN is free to investors. 

Minnesota Angel Investment Tax Credit
On April 1, 2010, the 25% Angel Tax Credit was signed into law. This credit was implemented to encourage investors to invest in early stage, high or new proprietary technology businesses. Minnesota Department of Employment and Economic Development (DEED) is administering the certification to businesses, investors and funds.  Funding for years 2012-2014 is set at $12 million per year and complete information including applications are available on the DEED websiteBusinesses  |  Investors

Two Rivers Angel Investment Network (TRAIN)
Provides financing as part of the RAINSource Capital network. TRAIN is an LLC formed in Greater Mankato. The fund is capitalized at $800,000 with 16 accredited individual and institutional investors.


Financial Check-up at no Charge

Financial Check-up

Would your business benefit from a financial check-up at no charge to you? The Small Business Development Center in Mankato is positioned to analyze your financials using sophisticated software designed to give you the information needed to assess your business' financial health.

Debt Financing - Public & Foundation

504 Corporation
504 Corporation is authorized by the U.S. Small Business Administration to make SBA 504 loans up to 40% of a project cost for land, buildings and machinery as 'subordinate' debt to a bank's first lien (50% of project cost); leaving only 10% required by the borrower.  Single-use facilities, equipment and start-up businesses may require an additional 5-10% cash injection by the borrower. Contact 504 Corporation, Mankato at 507.625.6056 or the corporate office in Rochester, MN at 507.288.6442.

City of Mankato Municipal Revolving Loan Funds
Provides low interest, revolving loan funds primarily for industrial/service economic development (financial incentives form).

City Center Mankato Revolving Loan Funds
Provides low interest, revolving loan funds for reinvestment in Mankato's City Center.

Minnesota Investment Fund

Provides grants to help add new workers and retain high-quality jobs on a statewide basis. The focus is on industrial, manufacturing, and technology-related industries Grants are awarded to local units of government who provide loans to assist expanding businesses.

Region Nine Development Commission Loan Programs
Region Nine Development Commission seeks to create new jobs in the region by administering a Revolving Loan Fund to assist existing and new businesses in securing financing they are otherwise unable to secure through traditional channels.

Small Business Development Loan Program
For established manufacturers with fixed asset expansion costs in excess of $1 million and adding a substantial number of new jobs. Through industrial development bonds, the Agricultural and Economic Development Board can support a loan at below market interest rates.

Southern Minnesota Initiative Foundation (SMIF)
Invests in emerging businesses and the emerging workforce, helping businesses, local governments and nonprofit organizations find common ground, pool resources and achieve more.

US Department of Agriculture (USDA) Loan Programs
Loans available to support clean and renewable energy. 

Debt Financing - Conventional (i.e. Banks)

Financial Institutions in Greater Mankato

Greater Mankato financial institutions can provide the fundamental financial services needed for your business as well as conventional financing tools.

Cash Flow

Growth Acceleration Program

The program provides consulting services to help small manufacturers that employ up to 100 workers become more efficient, more competitive and more likely to thrive and grow. GAP provides grants of up to $50,000 which are matched dollar-for-dollar by companies.

Partners Funding, Inc.

Partners Funding helps small businesses keep the cash flowing with invoice factoring. Their specialty is providing cash on accounts receivables to small businesses that provide services or products to other businesses. Manufacturing companies, distribution organizations, suppliers and professional service businesses; these are examples of the kind of businesses they currently work with. Brochure (PDF)

Tax Resources

e-Services by Minnesota Department of Revenue

An online tool designed to allow businesses to view taxpayer records, file returns, make payments and update registration information. Businesses are able to access information 24-7 and benefit from real-time help.




The Greater Mankato Growth, Inc. Family: Visit Mankato City Center Partnership