Small Business

Minnesota rolls out $25M small business loan participation program


The Minnesota Department of Employment and Economic Development (DEED) on Monday rolled out a $25 million small business loan participation program.

It is the sixth and final funding stream the state has launched as part of its $97 million State Small Business Credit Initiative. The state is using federal stimulus dollars included in the American Rescue Plan to fund the initiative.

In the newest program, DEED says it will purchase 25% to 30% of loan participations made by community development financial institutions (CDFis) and nonprofit lenders. Participations are when an entity such as a bank shares a percentage of the risk of a loan.

Lenders must apply to be part of the program, with participants to be selected in the coming months. Small businesses can then apply for loans directly from the lenders enrolled in the program, which are responsible for all of the credit decisions and loan terms.

Those loan participations will range from $10,000 to $250,000.

“CDFis and nonprofit lenders provide critical financial lifelines to businesses operated by Minnesotans facing historical financial disadvantages, including people of color, women, veterans, and those in greater Minnesota,” DEED Commissioner Steve Grove said in a statement. “Through this program, DEED will help make loans to these businesses go even further, ensuring underserved entrepreneurs have the chance to build the next big thing in our state.”

To be eligible for the loan, businesses need to be based in Minnesota and have fewer than 500 employees.

The other new small-business funding streams that are part of the State Small Business Credit Initiative announced in recent weeks include programs for automation, startups, venture capital and lenders.

Recommended Posts

Notizie Sportive E Risultati Reside Di Oggi

Antonio Rudiger appeared to tell Andriy Lunin which way Mateo Kovacic would ship his penalty earlier than the goalkeeper made an important save to assist Real Madrid beat Manchester City on Wednesday night. In the ninety fifth minute, Saka passed a free kick quickly to Ben White instead of capturing or crossing into the field, […]


The Ten Best Photography Books Of 2022 Arts & Culture

This characteristic is unique to photography and sets it other than different methods of image making. The seemingly computerized recording of an image by pictures has given the method a sense of authenticity shared by no different picture-making approach. The photograph possesses, within the in style mind, such apparent accuracy that the adage “the camera […]


35 Best Beauty Merchandise Of 2022, In Accordance With Vogue Editors

She added that Thai consumers’ experimental attitudes in direction of beauty makes it extra probably for Thailand to turn into a “striking point”​ for the delivery of latest developments. “We assume that the Thai cosmetics business is going to turn out to be the subsequent chief over the next 10 years. Over the previous 10 […]