Business Development Funding
Available to businesses engaged in manufacturing, warehousing, distribution, technology-related industries, and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business. A business must, at minimum:
- Be engaged in an eligible business activity
- Obtain local government support for their project via council resolution
- Invest at least $500,000 ($250,000 for Targeted Populations*) in real property improvements within one year of becoming a designated Job Creation Fund business maintaining existing employment numbers
- Pay at least $13.01 in wages and benefits in 2018, adjusted annually based on 110 percent of federal poverty guidelines. The level will change again on Jan. 1, 2019.
- Have other location options outside of Minnesota
- Cause no undue harm to Minnesota business competitors
- Certify that the project would not occur without Job Creation Fund assistance
Projects that begin prior to becoming designated by DEED are not eligible for the Job Creation Fund.
Projects that receive $200,000 or more in Job Creation Fund assistance are subject to prevailing wage requirements.
Companies that meet eligibility requirements must sign a business subsidy agreement with DEED to meet job retention, creation, wage, and capital investment requirements. The following benefits may be available once a business meets the conditions of its agreement and provides proof of performance:
- $1000 ($2000 for Targeted Populations*) per year per job created for jobs paying at least $27,172 in cash wages
- $2000 ($3000 for Targeted Populations*) per year per job created for jobs paying at least $36,576 in cash wages
- $3000 ($4000 for Targeted Populations*) per year per job created for jobs paying at least $47,026 in cash wages
- Up to a 5 percent rebate for real property improvements for businesses located in the Twin Cities Metro
- Up to a 7.5 percent rebate for real property improvements for business located in Greater Minnesota
*A targeted population is defined as if the business is located in Greater Minnesota or if 51% of the business is cumulatively owned by minorities, veterans, women or persons with a disability.
The Greater MN Business Development Infrastructure Grant Program helps stimulate new economic development, create new jobs and retains existing jobs through investments in public infrastructure. It provides grants to cities of up to 50 percent of the capital costs of the public infrastructure necessary to expand or retain jobs in the area, increase the tax base, or expand or create new economic development.
Funds are provided to help add new workers and retain high-quality jobs on a statewide basis. The focus is on industrial, manufacturing, and technology-related industries to increase the local and state tax base and improve economic vitality statewide. Grants are awarded to local units of government who provide loans to assist expanding businesses. All projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. There is a maximum of $500,000 per grant.
Businesses owned by registered members of a MN Native American tribe or band can receive low-interest loans that cover start-up and expansion costs, including normal expenses such as machinery and equipment, inventory and receivables, working capital, new construction, renovation, and site acquisition.
Site Cleanup and Redevelopment Funding
Provided to communities to assist in the cost of assessing and cleaning up contaminated sites for private or public redevelopment. Grants pay up to 75 percent of the costs to investigate and clean up polluted sites. Both publicly and privately owned sites with known or suspected soil or groundwater contamination qualify.
The Redevelopment Grant Program helps communities with the costs of redeveloping blighted industrial, residential, or commercial sites and putting land back into productive use. Grants pay up to half of redevelopment costs for a qualifying site. Grants can pay for land acquisition, demolition, infrastructure improvements, soil stabilization when infill is required, ponding or other environmental infrastructure and adaptive reuse of buildings, including remedial activities at sites where a subsequent redevelopment will occur.
DEED works strategically with businesses and educational institutions to train or retrain workers, expand work opportunities, and keep high-quality jobs in the state.
Various MN Tax Credit Programs
This program provides incentives to invest in startup and emerging companies focused on high technology.
This program provides sales tax refunds for 7 years to existing businesses expanding in Greater Minnesota.
This program provides sales tax exemptions for 20 years on equipment for qualifying investments.
This program provides tax credits Equal to 10 percent of qualifying expenses up to $2 million for certain R&D activities.