Dakota Business Lending’s Community Impact Loan program offers flexible financing from $1,000 to $250,000 for businesses at any stage. Designed to fill gaps where traditional financing falls short, the program helps entrepreneurs become bankable and succeed long term.
Minnesota programs providing financial assistance for entrepreneurs
Minnesota operates six small business financing programs: one loan guarantee program, two loan participation programs, and three equity/venture capital programs. The Minnesota Department of Employment and Economic Development (MN DEED) is the implementing entity for the state and the program administrator for the three lending programs and one venture capital program. MN DEED contracted with the University of Minnesota Office of Investments and Banking (UMN OIB) to administer two venture capital programs.
Featured state lenders
Gap Loan Program
Offers gap loans that fill the financing void between what a bank can provide and what the borrower needs, supporting business investment projects.
SBA Community Advantage Loan
Loans up to $350,000 for startups and existing businesses. As an SBA-approved lender, ADC offers these 7(a) guaranteed loans to businesses in underserved communities to support working capital, equipment, and expansion needs.
ADC Small Business Loans
Loans up to $50,000 available for startups and existing businesses. Designed to support growth and working capital needs, especially for underserved entrepreneurs.
ADC Microloan
Loans up to $10,000, approved internally by the ADC’s loan committee for eligible businesses. Ideal for early-stage or very small businesses with lower capital needs.
State SSBCI programs
Minnesota Multi-Fund Venture Capital
Provides equity support to small business by investing SSBCI capital in venture capital funds. The multi-fund program invests in qualified venture capital funds that will target seed and early-stage investments in Minnesota start-ups related to key state sectors, such as life sciences, climate solutions, agtech, foodtech, software, technology and advanced manufacturing.
Minnesota Direct Investment Venture Capital Program
Provides equity support to small businesses by co-investing in seed-stage to early-stage funding rounds alongside private investors. The program targets investments to Minnesota-based start-ups within key industry sectors, such as life sciences, climate solutions, agtech, foodtech, software, technology and advanced manufacturing.
Minnesota Small Business Loan Participation Program
Through SBLPP, DEED purchases 25% to 30% participations in loans made by approved non-depository Community Development Financial Institution (CDFI) and nonprofit lenders. Lenders are responsible for all credit decisions and loan terms. Borrowers must apply directly with an approved lender. Businesses must apply directly with an approved lender.
Minnesota Loan Guarantee Program
The MNLGP provides an 80 percent loan guarantee loans originated by community banks, credit unions, Community Development Financial Institutions (CDFIs) and nonprofit lenders. The maximum guarantee is $800,000. Eligible loan uses include most business purposes.
Minnesota Growth Loan Fund
Provides capital support to small businesses by providing loans that are matched with equity investments from private investors.
Minnesota Automation Loan Participation Program
Provides a companion loan of up to $500,000 and equal to up to 50 percent of private financing offered by a bank, credit union, CDFI, another nonprofit lender, or vendor.
MN SSBCI program details at a glance
State Small Business Credit Initiative (SSBCI) program administrator(s): Minnesota Department of Employment and Economic Development (MN DEED) along with the University of Minnesota Office of Investments and Banking (UMN OIB)