facebook app skip to content
Primary navigation

Angel Loan Fund

Minnesota's Angel Loan Fund Program (ALF) provided an additional funding option for businesses certified (or could have been certified) to participate in Minnesota's Angel Tax Credit Program. The fund has allocated all available program dollars and is no longer accepting applications.


The program provided a direct loan for 10 percent of the total amount of equity investment received in the business' approved funding round. Only one loan may be issued to each business for the duration of the ALF. At least one equity investment must be made by an investor that is both certified by the MN Angel Tax Credit Program (or could have been certified) and qualified as an Accredited Investor per the U.S. Securities and Exchange Commission under Rule 501 of Regulation D. However, the total equity investment attained for the round is not exclusive to investments made to meet the requirements of the Angel Tax Credit Program.

Eligible Applicants

Businesses certified to participate in the Angel Tax Credit Program during any of the program years with fewer than 500 employees.

Eligible Use of Funds

Funds may be used for start-up costs, working capital, business acquisitions and expansions, franchise financing, equipment loans, inventory financing, construction, and commercial, non-passive real estate acquisitions.

Maximum Available

10 percent of equity raised after program enrollment; $20,000 minimum loan amount, $250,000 maximum.

Interest Rates and Terms

Zero-percent interest, seven-year term, non-recourse, deferred, with a balloon. If the business is sold during the term, business will submit risk mitigation fee compensation equal to 30 percent of the original loan principal.

Application Process

  1. Business obtains Minnesota Angel Tax Credit Program Certification during any of the program years, or completes the Angel Tax Credit Certification Application verifying that they would have qualified for certification under the program.
  2. Business submits the ALF Business Enrollment Application Form and required supporting documents to DEED.
  3. Business receives ALF Acceptance Letter from DEED outlining maximum loan amount and eligible funding round beginning and end dates. Do not accept any funds until you receive official notice that you've been approved to participate in the program.
  4. Business submits the ALF Proof of Investment and Loan Request Form and supporting documents, once maximum investment has been raised during the eligible funding round.
  5. Business submits signed ALF Loan Agreement, ALF Promissory Note, and ALF Sales Proceeds Agreement.
  6. DEED distributes loan proceeds.

Application and Forms

Select the links below to view, download or print these forms:

For More Information

Contact Stephen Wolff at 651-259-7415.

Download a printer-friendly ALF program fact sheet.

back to top