Job Creation Fund Eligibility
The program is available to businesses engaged in manufacturing, warehousing, distribution, technology-related industries, and other eligible activities. Companies must work with the local government (city, county or township) where a project is located to apply to DEED to receive designation as a Job Creation Fund business.
To be designated as a Job Creation Fund business, a business must, at minimum:
- Be engaged in an eligible business activity
- Obtain local government support for their project via council resolution
- Invest at least $500,000 ($250,000 for Targeted Populations*) in real property improvements within one year of becoming a designated Job Creation Fund business
- Create at least 10 (5 for Targeted Populations*) new full-time permanent jobs within two years of becoming a Job Creation Fund business while maintaining existing employment numbers
- Pay at least $12.85 in wages and benefits in 2017, adjusted annually based on 110 percent of federal poverty guidelines. The level will change again on Jan. 1, 2018.
- Have other location options outside of Minnesota
- Cause no undue harm to Minnesota business competitors
- Certify that the project would not occur without Job Creation Fund assistance
Projects that begin prior to becoming designated by DEED are not eligible for the Job Creation Fund.
Prevailing Wage Requirements
Projects that receive $200,000 or more in Job Creation Fund assistance are subject to prevailing wage requirements. See more about Prevailing Wage Requirements or review this Prevailing Wage Requirements Fact Sheet.
Companies that meet eligibility requirements must sign a business subsidy agreement with DEED to meet job retention, creation, wage, and capital investment requirements. The following benefits may be available once a business meets the conditions of its agreement and provides proof of performance:
- $1000 ($2000 for Targeted Populations*) per year per job created for jobs paying at least $26,837 in cash wages
- $2000 ($3000 for Targeted Populations*) per year per job created for jobs paying at least $36,126 in cash wages
- $3000 ($4000 for Targeted Populations*) per year per job created for jobs paying at least $46,448 in cash wages
- Up to a 5 percent rebate for real property improvements for businesses located in the Twin Cities Metro
- Up to a 7.5 percent rebate for real property improvements for business located in Greater Minnesota
*A targeted population is defined as if the business is located in Greater Minnesota or if 51% of the business is cumulatively owned by minorities, veterans, women or persons with a disability.
For More Information
Contact Tom Washa at 651-259-7483 or toll free at 800-657-3858. Or contact a DEED Business Development Manager in your area.
This Job Creation Fund Fact Sheet explains the benefits of the program in greater detail.