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Automation Loan Participation Program

The Automation Loan Participation Program (ALPP) is part of the State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of the Treasury and is subject to SSBCI rules.

Through ALPP, DEED makes companion loans intended to fill gap financing needs for businesses purchasing machinery, equipment, or software to increase productivity and automation. Eligible borrowers include manufacturing, distribution, technology and warehousing businesses located in Minnesota. The program targets businesses with fewer than 500 employees.

Loans are made in conjunction with private financing from a lead lender, typically a bank. Private financing will ideally be five times the amount of the requested DEED loan and is required to be at least equal to the DEED loan. Both loans must be used for qualified automation expenses as defined in the FAQs. Loans may be up to $500,000 with 1% interest on a 5 to 7-year term.

Application is made jointly by the business and the lead lender. If you have eligibility or other questions about the program, you may email the SSBCI Unit team at SSBCI.DEED@state.mn.us or call Tiffany Fettig at 651-259-7446.

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