Areas Served: Statewide Minnesota
The Small Business Development Loan Program provides loans for Minnesota business expansions that result in the creation of new jobs.
Small business loans up to $5 million are made by the Minnesota Agricultural and Economic Development Board (MAEDB) through the issuance of industrial development bonds.
Eligibility and Terms Manufacturing and industrial companies located or intending to locate in Minnesota and meet the federal definition of a small business (generally those with 500 or fewer employees) are eligible.
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.
Interest rate is the market rate of interest 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 is 10 years.
Collateral requirements include the first mortgage on real property or equipment financed by MAEDB and personal guarantees of owners.
In some cases, additional security in the form of other liens or guarantees may be required by MAEDB.
There is no MAEDB fee, but bond issuance costs of 4 percent are capitalized with the loan principal; 10 percent of bond issue must be escrowed.
Contact InformationMinnesota Department of Employment and Economic Development
Address: 332 Minnesota Street, Suite E-200
City: Saint Paul
State: Minnesota
Website:
http://www.positivelyminnesota.com/Business/Financing_a_Business/DEED_Business_Finance_Programs/Small_Business_Development_Loan_Program.aspx
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