State of Minnesota
Development & Expansion Incentives
The State of Minnesota offers incentive programs through the Minnesota Department of Employment & Economic Development.
- Minnesota Job Creation Fund provides grants of up to $1 to $2 million to help businesses grow and create jobs. Businesses must satisfy the “but/for” test.
- Minnesota Investment Fund offers loans up to $1,000,000 loan and focuses on industrial, manufacturing, and technology-related industries. Funding is provided 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.
- Greater Minnesota Job Expansion Program provides sales tax exemptions for up to 7 years to existing businesses located in Greater Minnesota that increase employment and meet other eligibility requirements.
- Automation Loan Participation Program provides companion loans intended to fill gap financing needs for businesses purchasing machinery, equipment, or software to increase productivity and automation. Loans of up to $500,000, 5 to 7 year term, 1% interest rate, private financing match required. This program is available only to businesses headquartered in Minnesota and targets businesses