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Minnesota and North Dakota Offer New Incentives to Support Business Growth

December 22, 2022 | Bylgnelson| News

North Dakota and Minnesota have recently announced new business incentives.

NORTH DAKOTA

An approximate total of $58.6 million of SSBCI funds were allocated to the State of North Dakota for two equity and venture programs, the Angel Match Program (AMP) and the Direct Investment Program. Both programs are direct investment programs that will provide equity support directly to small businesses and startups by co-investing alongside private investors. The Direct Investment Program is under final review and an announcement will be made once the program’s details are finalized.

The North Dakota Department of Commerce recently opened applications for the AMP, with an approximate total of $13.6 million of equity and venture funds are available to early-stage North Dakota businesses. The AMP was created to expand access to capital for underserved communities by focusing outreach, technical assistance, and capital investment in rural communities, tribal communities, and communities undergoing economic transitions such as coal communities.

“The Angel Match Program will serve as a vital tool in encouraging entrepreneurship and empowering early-stage North Dakota businesses by providing access to the capital needed to set a solid foundation for business endeavors,” Commerce Commissioner Josh Teigen said. ”We are excited to begin this new opportunity and are confident that we will see many positive economic outcomes from this program in the coming years.”

MINNESOTA

The Minnesota Department of Employment and Economic Development (DEED) launched several new programs as part of the $97 million received through the State Small Business Credit Initiative (SSBCI). Programs include:

  • The Automation Loan Participation Program, providing 1.00% companion loans from DEED to cover financing gaps and expand financing opportunities for businesses purchasing machinery, equipment, or software to increase productivity and automation;
  • The Growth Loan Fund, providing direct 1.00% loans to innovative seed- and early-stage technology businesses based on a match of raised privately equity funds;
  • The Minnesota Loan Guarantee Program, providing 80% loan guarantees for qualified loans made by enrolled institutions;
  • The Small Business Loan Participation Program, providing Purchased loan participations for approved lenders making loans to eligible small businesses and microenterprises; and
  • The Direct Investment and Multi-Fund Investment Programs, two venture capital programs offered by the University of Minnesota investing in Minnesota-based seed- and early-stage businesses in the advanced manufacturing, agtech/foodtech, climate tech, life sciences, software, and technology sectors.

“Three out of every four Minnesotans work in small businesses,” said MN DEED Commissioner Steve Grove. “This new funding will have a significant impact for business owners around the state who need it most – especially entrepreneurs of color, women and veterans. They are building the future of our economy.”

There are additional details about this program – plus numerous resources for businesses – on the state’s Small Business Hub.