[St. PAUL, MN] – Governor Tim Walz today announced $33 million for 225 new and developing small businesses. The Governor was joined by small business owners representing manufacturing, health care, hospitality, and clean technology who have been able to start or expand their businesses thanks to partnership with the state through the Department of Employment and Economic Development (DEED).

"Growing up in a small town, I saw how small businesses can make main streets come alive," said Governor Walz. "Small businesses are job creators that fuel innovation and strengthen our communities. Making Minnesota the best state to live means it's a place where entrepreneurs can put their ideas into action to support a diverse and thriving economy. With this funding, we'll partner with hundreds of new small businesses to ensure they have the funding they need to get started."

This funding is part of the State Small Business Credit Initiative (SSBCI). This is the second of three rounds of funding totaling $97 million.

To date, DEED has deployed $29.5 million of SSBCI funding to help 160 small businesses in 44 cities open, innovate, and expand. The new funding is expected to reach 225 new and developing businesses.

"DEED is pleased to work with the Department of the Treasury once again to support small businesses in our communities," said DEED Commissioner Matt Varilek. "99.7% of businesses in Minnesota are small businesses. They manufacture essential goods and make new breakthroughs in tech. They line our main streets and anchor our neighborhoods. Small business drives Minnesota's economy in every corner of our state and with this initiative, we are continuing to invest in the small businesses that call Minnesota home."

The $33.3 million will fund six existing SSBCI programs: 

• Automation Loan Participation Program. Low-interest loans of up to $500,000 available to manufacturing, distribution, technology, and warehousing businesses. 
• Growth Loan Fund. Low-interest loans of up to $400,000 available to early-stage businesses that are engaged in technological innovation in Minnesota that seek to raise equity investments. 
• Minnesota Loan Guarantee Program. Guarantees up to $800,000 on loans enrolled by approved lenders. 
• Small Business Loan Participation Program. DEED purchases $10,000 to $250,000 participations in loans made by approved non-depository Community Development Financial Institutions and nonprofit lenders. 

DEED is partnering with the University of Minnesota on two venture capital funds: 

• Direct Investment Venture Capital. Venture capital investments for seed-stage and early-stage startups. 
• Multi-Fund Venture Capital. Fund-level venture capital investments targeting advanced manufacturing, agtech/foodtech, climate tech, life sciences, software, and technology startups.

"We are thrilled to continue our partnership with the State to support Minnesota's economy and innovative thinkers," said Gregg Goldman, University of Minnesota executive vice president for finance and operations. "It's an honor to demonstrate the University of Minnesota's breadth of knowledge in early-stage businesses and technology to serve Minnesotans, and we look forward to seeing local businesses grow with this second phase of investments."

"Hoyo is a small business built on sharing traditional, authentic Somali cuisine," said Ghita Worcester, CEO of Hoyo Sambusa. "Participating in the Automation Loan Participation Program allowed our small team to expand production and focus on sharing a piece of our culture with the Twin Cities while creating jobs that provide for families in our community."

Interested businesses can learn more about these programs, and find out how to connect with a lending partner, on DEED's SSBCI page.

About the State Small Business Credit Initiative SSBCI was part of the American Rescue Plan Act (ARPA) of 2021 and included $10 billion for state, territory and tribal business finance programs. This is the second SSBCI initiative – Minnesota received and distributed $15 million through the Small Business Jobs Act of 2010. 

More information about SSBCI, visit the Treasury's SSBCI page.