Top Small Business Grants in Minnesota

The top small business grants in Minnesota can help you start or grow your dream, so it can be wise to familiarize yourself with what’s available. Typically, these funds don’t have to be paid back, meaning that getting one offers a key opportunity to embark on or enhance your entrepreneurial journey.

Here, learn more about some of the best opportunities for small business grants in Minnesota, how to apply, and other ways to fund your enterprise.

Small Business Grants in Minnesota

Small business grants in Minnesota can offer current and prospective entrepreneurs the opportunity to receive funding for their enterprise that usually doesn’t need to be paid back, unlike small business loans. The amounts awarded by specific Minnesota small business grants, what factors you need to qualify, and other features can vary significantly. Delve into the specifics of grants awarded to Minnesota-based businesses.

Minnesota Job Creation Fund (JCF)

The Minnesota Job Creation Fund is an award-winning program that has established financial incentives for brand-new and established businesses in pursuit of growth. These businesses need to meet specific goals in terms of creating jobs for the community and utilizing capital investments. Applicants also need to operate in specific sectors, such as manufacturing, warehousing, distribution, and certain tech-related fields, among others.

Companies that qualify for JCF can receive up to $1 million for generating and maintaining jobs that are considered well paid according to the fund’s criteria. Applicants may also be able to obtain this grant (sometimes going up to $2 million) for constructing and renovating facilities or otherwise improving local properties. If they’re chosen to receive an award, businesses will be tasked with signing a business subsidy agreement and providing proof of eligibility.

Launch Minnesota Innovation Grants

To date, 383 Launch Minnesota Innovation Grants have been awarded, totaling $9.7 million. The mission of these grants is to help fund innovative, scalable tech businesses in the state. Grants are available in amounts up to $35,000. Qualified applicants need to be centered on certain tech or otherwise innovation-focused industries, have been in business fewer than 10 years, and have less than $1 million in annual revenue or equity financing.

Minnesota Investment Fund (MIF) Grants

The Minnesota Investment Fund (MIF) Grants aims to provide financing (up to $1 million per project) to businesses that need to add workers. The goal is to create and retain high-quality jobs across the state. However, there’s an emphasis on supporting certain sectors —namely, industrial, manufacturing, and technology enterprises.

If you’re interested in applying, it’s important to be aware that the MIF is structured as a loan program, with portions of the loan being forgivable. The state supplies funds or grants to local governments which issue low-interest loans to qualifying businesses. The Department of Employment and Economic Development (DEED) often designates portions of these loans that can be forgiven, provided the business achieves certain job creation and wage metrics. The fact that you may not have to pay back the funding distinguishes them from standard small business loans in Minnesota.

Minneapolis Great Streets Small Business Grants

The Minneapolis Great Streets Small Business Grants program is an example of a more local grant. It’s specific to the city of Minneapolis and encourages business district revitalization in a few different ways, from promoting a commercial area to supporting storefront improvements. The grants must be used in Great Streets districts, which can be climate-supporting zones or areas of concentrated poverty with certain percentages of people of color residing there, among other qualifications.

Grants range from $5,000 to $10,000 for storefront improvement projects, and can go as high as $50,000 for other types of programs.

Do You Have to Pay Back a Small Business Grant?

Typically, you do not have to pay back a grant. That’s what distinguishes a small business grant vs. a loan. With a loan, you usually pay back the principal plus interest and any other fees in installments over time.

The definition of a grant is money that’s given for a specific purpose (often by a government agency or an organization) which does not need to be repaid. For this reason, grants may be very helpful to anyone starting or scaling a small business.

How to Apply for Small Business Grants in Minnesota

Applying for a small business grant in Minnesota can require some research and paperwork, as is also the case with most grant applications across the country. It’s important to learn whether you meet the qualifications for a specific grant opportunity, to understand when the deadline for your submission is, and to know what can help you present the best possible package for consideration.

Documents and Requirements

Checking the requirements for a specific grant and then securing the documents needed to prove that your business qualifies, which will likely be a major part of your submission, can be a key step in applying for a small business grant in Minnesota.

As you research, it’s wise to visit the actual application page of the grant and comb through these details. For example, for the Minnesota JCF grant, some of the requirements are that you must:

•   Be engaged in an eligible business activity

•   Invest at least $500,000 ($250,000 for Targeted Populations, which include women, minorities, veterans, and people with disabilities) in real property improvements within one year of becoming a designated Job Creation Fund business

•   Create at least 10 (5 for Targeted Populations) new permanent full-time equivalent jobs within two years of becoming a Job Creation Fund business while maintaining existing employment numbers

•   Pay specific amounts in wages and benefits, adjusted annually based on 110% of federal poverty guidelines

If you’ll be able to meet the requirements for a grant, accessing and reviewing what is needed for the application is an important next step. You will likely need to gather various business and financial documents in order to complete your application to receive a small business grant in Minnesota.

Submission Deadlines and Application Tips

Following a grant’s submission deadlines can also be critical. Some grants will have a specific deadline you must meet to be considered for funding. For instance, in 2026 the Livable Communities Grant announced a final deadline of either April 15 or October 15, as determined by the city of Minneapolis. With other grant opportunities (like the JCF), applications may be accepted on a rolling basis throughout the year.

Beyond heeding deadlines, there are other ways to improve your chances of getting a small business grant in Minnesota.

•   Check that you meet the requirements for a grant before putting time toward applying. You will likely need to be able to show that your business is registered in Minnesota, and you may need to prove that you operate in a specific geographic area, pay a certain wage, and/or meet other qualifying criteria.

•   Streamline your communication channels. When you’re applying for a grant, it can be helpful to use only one email address and phone number. It may seem convenient to, say, sometimes use your personal vs. your business email address, but doing so can lead to communication glitches and missed messages.

•   Organize your documents. When applying for a grant, you may need to submit copies of your tax returns, commercial leases, payroll, inventory records, P&L statements, and other business paperwork. As you embark on applying for a small business grant, it can make your life easier to gather these in advance and keep them in an easily accessible location, whether that’s in a hard-copy file or a folder on your computer.

•   When working on statements about how you will use a grant, consider focusing on the community impact, since that’s often a key factor in decision-making. For instance, will the grant help you add jobs to the community, attract more recent grads to the area, or revitalize an urban shopping corridor? Underscoring that aspect can help support your application.

•   Detail exactly how you will use any funds you receive via a grant. Rather than making broad statements about the money, you may find that it can be a good move to spell out line items regarding just how the grant will be used. This not only helps decision-makers better understand your vision, it also gives you a chance to work through how you would allocate the funds.

Recommended: Guide to Grant Writing for Small Businesses

Who Is Eligible for Minnesota Small Business Grants?

The criteria regarding who is eligible for a Minnesota small business grant vs. a loan will vary from grant to grant. Having a business that’s located and registered in Minnesota is an all-but universal requirement.

Beyond that, there may be requirements relating to annual revenue, business sector, number of employees, wages paid, and other specifics. It’s wise to fully acquaint yourself with the specific eligibility requirements for any grant you’re interested in.

Minnesota Resources for SMB Owners Looking for Funding

If you’re a small business owner looking for funding, there are various ways to access information and connect with possible infusions of cash. Here are three top resources in Minnesota to consider.

Minnesota Small Business Development Center (MnSBDC)

The Minnesota Small Business Development Center, or MnSBDC, is a network that can offer entrepreneurs in the state of Minnesota free professional guidance. The kind of assistance it can provide includes:

•   One-on-one consulting to help with market research, business development, and financial planning

•   Training programs and workshops to enhance knowledge and growth

•   Access to funding opportunities

Funded through the Minnesota DEED, MnSBDC operates throughout the state, with nine regional centers as well as satellite offices.

SBA District Offices in Minnesota

The Small Business Administration, or SBA, has a central Minnesota office in Minneapolis that serves all of the state’s 87 counties. That SBA location can help current and aspiring business owners in several ways:

•   Business counseling

•   Access to potential funding

•   Federal contracting certifications

•   Networking with lenders, community groups, and other local organizations that can assist with launching and growing a small business

To schedule a virtual or in-person appointment, call 612-370-2324.

SCORE Mentorship Programs in Minnesota

Small business owners in Minnesota seeking funding intel can also access the SCORE Mentorship Programs (originally named for the Service Corps of Retired Executives). There are two official SCORE chapters that help entrepreneurs across the state, providing free mentoring by professionals, webinars, workshops, and other forms of education and support for those launching and growing their enterprise.

Examples of the kind of online live seminars that SCORE in Minnesota hosts include “How to Increase Your Visibility in Search and AI” and “How Government Contracts Really Work.”

Alternative Funding Sources for Small Businesses in Minnesota

While grants provide one path to funding a small business in Minnesota, there are other options available to entrepreneurs, such as microloans and SBA loans.

Minnesota State Small Business Credit Initiative (SSBCI)

As a small business owner, you might seek funding from the Minnesota State Small Business Credit Initiative, or SSBCI, to launch or grow your business. The state has been approved for up to $97 million in funding that is distributed through an array of programs providing loans and other forms of investment. There are venture capital funds to support small business equity, investments in early-stage startups, loans available to nonprofits, and companion loans available, among other options.

Minnesota Microloan Lenders

A microloan lender is an organization that helps entrepreneurs (often those who can’t qualify for typical bank financing) get smaller loans. The amounts usually max out at $50,000, but some programs do go higher (usually to $100,000). These short-term loans often have more favorable repayment terms than standard commercial loans.

Microloans can also cater to specific communities. For instance, Minnesota’s WomenVenture primarily lends to female entrepreneurs, while African Economic Development Solutions (AEDS) is a St. Paul-based SBA microlender that focuses on local immigrant and minority-owned businesses.

SBA Loans for Minnesota Businesses

Small Business Administration (SBA) loans can also help fund Minnesota businesses. These are available through banks, credit unions and other community lenders and usually backed in part by the SBA. The options typically include:

•   SBA 7(a) loans, which offer up to $5 million in funding to be used as working capital or for such expenses as equipment and real estate

•   SBA 504 loans which are fixed-rate options available for such major investments as commercial real estate and large machinery

•   SBA microloans, which, as noted above, typically top out at about $50,000 or occasionally more

Minnesota SMB Loans from Private Lenders

Another resource for business owners in Minnesota are small business loans from private lenders. These are commercial financial products that can be issued by banks, credit unions, and other lenders. They are often backed by or co-funded by government programs.

There are an array of these loans available. Here are a few common types of private lender small business loans:

•   SBA 7(a) and 504 loans (described above), which are federally guaranteed loans that are usually issued by private banks and credit unions

•   Minnesota Loan Guaranteed Program (MNLGP), which is a state-backed plan that supports businesses with no more than 500 workers seeking to gain working capital or startup funding

•   Local participation loans, which often pair private lenders and government entities to help make commercial loans attainable by local business owners

Business Lines of Credit & Equipment Financing

Small business owners in Minnesota can apply for working capital and other purposes through local options via lines of credit and different kinds of loans. With a business line of credit, you borrow against a maximum amount, pay it back, and can borrow again, much as you might do with a revolving credit card. Equipment funding, a kind of loan that can be useful for small business owners, involves taking out a loan to obtain equipment needed for the company and securing the loan by using the equipment itself as collateral.

Researching what is available in terms of lenders, interest rates, terms, and other details can yield options to help an enterprise launch and grow. Search local banks, credit unions, and specialized lenders to explore options.

The Takeaway

There are many top options available for grants for small businesses in Minnesota. These are funds that typically don’t need to be repaid and can be used to launch or scale an enterprise. Whether you choose to apply for a grant or take out a small business loan, there are many ways to help support your entrepreneurial goals.

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FAQ

How do you get a small business grant in Minnesota?

To get a small business grant in Minnesota, it’s important to research the opportunities you qualify for and then follow the application process carefully, meeting any deadlines and providing any documentation required. Securing a small business grant can supply funding that does not need to be repaid.

How hard is it to get a business loan in Minnesota?

In general, getting a small business loan in Minnesota has a moderate difficulty level. Securing a loan will depend to a large extent on your credit score, how long you have been in business, and how well you prepare your application. Bank loans are one option, but alternative programs can help those who don’t easily qualify for those opportunities.

What is the easiest SBA loan to get approved for?

The SBA microloan can be among the easiest SBA loans to get approved for. These loans have lower requirements as they were designed for startups and new business owners who may be turned down by traditional lenders. They are usually offered by nonprofit lenders and are for lower amounts (the average SBA microloan is currently about $13,000).

What types of businesses are most likely to receive grants in Minnesota?

The types of enterprises that are most likely to receive grants for small businesses in Minnesota usually fall into a few categories: those owned by underrepresented business owners (such as women), those that operate in the technology sector, and those that are in specific economically disadvantaged locations or industrial sectors that are in need of support.

Are there specific grants for women or minority business owners in Minnesota?

Yes, Minnesota does offer state-funded grants for women and minority business owners in the state. Examples of these include the Promise Grant Act Program for businesses owned and operated by minorities, women, veterans, people with disabilities, and other qualifying individuals, and WomansNet Amber Grants for businesswomen.

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Photo credit: iStock/RudyBalasko

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