Minnesota Small Business Loan Guarantee Program
The Minnesota Small Business Loan Guarantee Program was a temporary program, established in response to the 2020 public health emergency, to help Minnesota lenders provide capital to small businesses in Minnesota affected by COVID-19. These loans could be used for a variety of purposes and could be subordinate to other financing. Allowable loan uses had to be exclusively in Minnesota and included machinery or equipment purchases, maintenance, or repair; expenses related to moving into or within Minnesota; and working capital when the working capital was secured by fixed assets when possible.
The funds could only be provided to Minnesota businesses with fewer than the equivalent of 250 employees. The number of employees included parent company and all locations. The program provided an 80% guarantee up to a maximum of $200,000. A fee of .25 percent on the guarantee loan principal was be charged for each loan enrolled into the program.
All loans were made by lenders enrolled in the program – no loans came directly from DEED. The guarantee was provided to the lender to help mitigate risk, lending capital was not provided by the program. The lenders’ ability to make loans was dependent on each lender’s available capital.
Applications closed February 28, 2021. Applications for the Small Business Loan Guarantee Program are no longer being accepted.