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Minnesota Investment Fund (MIF)
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The Small Cities Economic Development Grant from the Minnesota Department of Employment and Economic Development (DEED) is for businesses acquiring "fixed assets" (such as equipment, buildings, and land) and adding new workers as a result. This program provides companies below-market financing. Virtually all types of businesses are eligible, excluding retail enterprises.
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| Grant Amount |
Up to $500,000, 50% of the project needs to be private financing. The grant is provided to the local government unit which then loans the money to the business |
| Use of Funds |
Cannot be used for working capital, retail businesses and industrial park development |
| Term of Loan |
Real Estate maximum of 20 years
Machinery and Equipment a maximum of 10 years |
| Rate of Interest |
Negotiated |
| % of Financing Available |
50% of project, most projects selected have at least 70% private financing |
| Down Payment (Equity) |
Variable |
| Typical Structure |
Variable |
| How Long Does it Take |
Minimum of 2-3 weeks |
| Collateral |
Negotiated |
| Personal Guarantees |
Yes |
| Eligible Projects |
Loans for land, buildings, equipment and training . Funds may also be used for infrastructure improvements necessary to support businesses located or intending to locate in Minnesota. |
| Ineligible Projects |
Working capital, retail business, and industrial park development. |
| Job Creation Criteria |
Projects must meet minimum criteria for number of jobs created or retained and wage thresholds |
| Incentives |
“Gap” financing |
| Contact Regional Representative |
Cass County – Kari Howe, 218-755-4478
Todd or Wadena County – Helen Conde, 651-297-2872
Morrison or Crow Wing County – Diane Knutson 651-296-6076 |
For more information on this program, contact BLADC.
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