Looking for small business grants in Minnesota for 2025? Discover available grants, their benefits, eligibility criteria, and application links to secure funding for your business growth.
Small business owners in Minnesota face unique challenges, including securing funding to grow and sustain their businesses. Grants offer an excellent opportunity to obtain financial assistance without the burden of repayment. In this guide, we’ll explore the top small business grants in Minnesota for 2025, detailing their descriptions, benefits, eligibility requirements, and how to apply. Whether you’re a startup, a nonprofit, or an established business, this article will provide the essential information you need to access these grants.
Introduction: Minnesota Small Business Grants.
| Key Point | Details |
|---|---|
| Target Audience | Minnesota small business owners, startups, and nonprofits |
| Grant Purpose | To provide financial support for business growth, innovation, and community development |
| Application Period | Varies by grant; generally open in 2025 |
| Main Grant Providers | State of Minnesota, federal programs, private organizations, and local initiatives |
| Ease of Application | Most grants require detailed proposals and evidence of eligibility but offer significant perks |
Key Takeaways
- Minnesota offers a range of grants aimed at supporting diverse business sectors.
- Each grant has unique eligibility criteria and funding benefits.
- Applying early and meeting deadlines is crucial to securing funding.
Top 10 Minnesota Small Business Grants.
1. Minnesota Job Creation Fund
The Minnesota Job Creation Fund is designed to encourage business expansion and job creation within the state.
This grant provides funding to businesses that meet job creation and investment milestones. It focuses on spurring economic growth in various sectors, particularly manufacturing, technology, and healthcare.
Perks
- Grants up to $1 million for eligible businesses.
- Additional incentives for businesses in underserved communities.
- Supports operational expansion and new job creation.
Eligibility Criteria
- Businesses must create a minimum number of jobs within a specified timeframe.
- Located in Minnesota and registered with the state.
- Must show evidence of financial stability and growth potential.
Application Portal
Apply for the Minnesota Job Creation Fund – https://mn.gov/deed/jobcreation/index.jsp
2. Small Business Innovation Research (SBIR) Grants
The SBIR program supports businesses engaged in research and development projects with commercial potential.
This federally funded program is available to Minnesota-based businesses working on innovative technologies and solutions.
Perks
- Funding ranges from $50,000 to $250,000 for Phase I projects.
- Opportunity to scale with Phase II funding.
- Access to federal resources and mentorship programs.
Eligibility Criteria
- Focused on R&D in areas like tech, healthcare, or agriculture.
- Must meet federal small business size standards.
- Owned by U.S. citizens or permanent residents.
Application Portal
Learn More About SBIR Grants via https://www.sbir.gov/
3. Minnesota Emerging Entrepreneur Program
The Emerging Entrepreneur Program supports minority-owned and women-owned businesses.
This state-funded initiative provides financing to help underrepresented entrepreneurs launch and grow their businesses.
Perks
- Low-interest loans up to $150,000.
- Grants available for specific community projects.
- Focus on addressing economic disparities.
Eligibility Criteria
- Minority-owned or women-owned businesses.
- Demonstrated need for financial support.
- Must operate within Minnesota.
Application Portal
Emerging Entrepreneur Program Details
4. Minnesota Angel Tax Credit
The Angel Tax Credit Program incentivizes investment in startups and early-stage companies.
This program provides tax credits to investors who fund startups in Minnesota, indirectly benefiting small businesses.
Perks
- Tax credits of up to 25% on investments.
- Encourages funding for innovation-driven startups.
- Boosts access to private capital.
Eligibility Criteria
- Businesses must be early-stage with high growth potential.
- Registered as a Minnesota business.
- Investors and businesses must meet specific guidelines.
Application Portal
Angel Tax Credit Program Info – https://www.njeda.gov/angeltaxcredit/
5. Local Business Grant Programs
Several Minnesota cities and counties offer local grants tailored to specific communities.
These programs provide targeted support for businesses that contribute to local economic growth. Examples include the Minneapolis 2% Loan Program and St. Paul STAR Grants.
Perks
- Small grants ranging from $5,000 to $50,000.
- Focus on community development and revitalization.
- Flexible funding uses, including equipment purchases and renovations.
Eligibility Criteria
- Must operate within the specific city or county offering the grant.
- Meet the requirements outlined in each program.
Application Portal
Check Local Business Grant Opportunities
6. Minnesota Investment Fund (MIF)
The Minnesota Investment Fund supports job creation and retention by providing financial assistance to businesses planning major expansions or relocations in the state.
Perks
- Loans of up to $500,000, with potential for forgiveness under certain conditions.
- Focuses on manufacturing, warehousing, and other critical industries.
- Flexible use for equipment purchases, facility improvements, and operational expansions.
Eligibility Criteria
- Businesses must create or retain high-quality jobs.
- Must be operating within Minnesota.
- Financial contribution or matching funds required.
Application Portal
Apply for the Minnesota Investment Fund – https://mn.gov/deed/mif
7. Rural Business Development Grants (RBDG)
This federal program provides funding to support small businesses in rural areas of Minnesota. It aims to strengthen local economies and create jobs.
Perks
- Grants ranging from $10,000 to $500,000, depending on project scope.
- Can be used for technical assistance, training, and infrastructure projects.
- Focuses on rural communities and small towns.
Eligibility Criteria
- Businesses located in rural areas (population under 50,000).
- Must demonstrate community impact and job creation potential.
- Nonprofit organizations can also apply for related business support activities.
Application Portal
Learn About RBDG Grants – https://www.rd.usda.gov/programs-services/business-programs/rural-business-development-grants
8. Launch Minnesota Innovation Grants
This program, spearheaded by the state, supports startups and early-stage companies focused on high-tech and innovative solutions.
Perks
- Grants of up to $35,000, with additional funding for underrepresented founders.
- Mentorship and technical assistance included.
- Opportunity to connect with investors and statewide innovation networks.
Eligibility Criteria
- Startup businesses with a focus on technology, innovation, or scalability.
- Must be based in Minnesota.
- Entrepreneurs from underserved communities receive preference.
Application Portal
Explore Launch Minnesota Grants – https://launchminnesota.org/
9. Neighborhood Development Center (NDC) Small Business Grants
NDC provides grants and other resources to businesses in economically challenged neighborhoods, helping local entrepreneurs thrive.
Perks
- Micro-grants ranging from $1,000 to $10,000.
- Free business training and mentorship.
- Focus on small, community-based enterprises.
Eligibility Criteria
- Businesses located in underserved neighborhoods in Minnesota.
- Must complete a business training program through NDC.
- Demonstrate a commitment to community impact.
Application Portal
Check NDC Opportunities – https://www.ndc-mn.org/
10. EDA Public Works and Economic Adjustment Assistance Program
This federal program provides grants to support business development projects that strengthen local economies and create jobs.
Perks
- Grants can cover up to 50-80% of project costs.
- Focuses on infrastructure improvements, business parks, and innovation centers.
- Encourages public-private partnerships for sustainable development.
Eligibility Criteria
- Available to local governments, nonprofits, and businesses partnering on large projects.
- Must address economic development or disaster recovery.
- Preference for projects in economically distressed areas.
Application Portal
Apply for EDA Grants – https://www.eda.gov/funding/funding-opportunities
Conclusion
Minnesota’s small business grants for 2025 present a wealth of opportunities for entrepreneurs and established businesses. By leveraging these funding programs, you can grow your business, create jobs, and contribute to Minnesota’s vibrant economy. Take the time to review each grant’s criteria and deadlines carefully. Start your application process early to maximize your chances of success.
FAQs About Minnesota Small Business Grants.
1. What are small business grants, and how do they differ from loans?
Grants are financial aids provided by government agencies or private organizations that don’t need to be repaid. Loans, on the other hand, must be repaid with interest.
2. Can startups in Minnesota apply for these grants?
Yes, many grants, such as the Angel Tax Credit and SBIR programs, specifically cater to startups.
3. Are there grants for minority-owned businesses in Minnesota?
Yes, the Emerging Entrepreneur Program focuses on supporting minority-owned and women-owned businesses.
4. Do all grants require matching funds?
Not all grants require matching funds, but some, like the Job Creation Fund, may require a financial commitment from the business.
5. Where can I find assistance with the grant application process?
You can seek help from the Minnesota Department of Employment and Economic Development (DEED) or local Small Business Development Centers (SBDCs).
