Local & State Incentives

MNvest is Minnesota’s equity crowdfunding program for small businesses. Minnesota law now allows businesses to raise money online from Minnesota investors. MNvest offers small businesses in the state the opportunity to raise money from Minnesotans with just a few thousand dollars to invest. Similar to reward-based crowdfunding sites (like Kickstarter), MNvest enables Minnesota businesses to legally advertise investment opportunities to all Minnesota residents.

Gopher Angels (GA) is a network of accredited investors seeking to invest capital and expertise in early-stage Minnesota businesses. GA looks for outstanding entrepreneurs who can turn their vision into a successful business. In addition to financial support, GA members will provide businesses with strategic guidance, valuable connections, and business support to take your company to the next level.

The program supports the development of Indian-owned and operated businesses and promotes economic opportunities for Indian people in Minnesota. Loans may be up to 75 percent of project costs and feature favorable interest rates and repayment terms.

Innovative Business Development Public Infrastructure provides grants to local governmental units on a competitive basis statewide for up to 50 percent of the capital cost of the public infrastructure necessary to expand or retain jobs in innovative businesses and organizations.

The Metropolitan Council Underutilized Business Program (MCUB) is designed to engage and encourage the use of underutilized Minnesota-based small businesses for the Council's projects and procurements.

MCUB firms can do business with the Council in two ways:

• Through procurements, selling products or services to the Council
• Through projects, as a subcontractor working on the Council's projects

Qualifying as MCUB

In order to qualify as an MCUB firm the business must be Minnesota-based and have an active certification from one of these programs:

• DBE (MNUCP)
• Targeted Group Business (MN Dept of Admin)
• CERT Certified Women Owned or Minority Owned Only (City of St Paul)
• Veteran Owned Business (U.S. Dept. of Veteran Affairs)

Applying for DBE, Targeted Group or CERT Certification

The Minnesota Department of Administration has created a one-stop-shop certification portal for businesses that wish to submit an application for any of the three certifications listed above.

Directory of MCUB Firms

Firms with these active certifications will be listed in the MCUB Directory, which is updated monthly.

MCUB Participation Contract Goals for Locally Funded Projects

Project contracts will include MCUB participation goals if they meet the following three requirements:

• The project is locally funded
• There are opportunities for subcontractors 
• The contract value is more than $100,000

All bidders/proposers for projects with MCUB goals will be required to meet the MCUB goal percentage. If the bidder/proposers is not able to meet the goal they may receive a waiver from OEO based on their Good Faith Efforts.

MCUB Select

The Metropolitan Council has implemented a sheltered market solicitation process called MCUB Select. The MCUB Select Program is intended to reduce barriers and increase utilization of MCUB firms that do business with the Council.

MCUB Select will apply when at least three MCUB firms are eligible, available and capable of performing the scope of work identified within the solicitation. Only MCUB firms are eligible to participate in the MCUB Select program. Firms eligible to participate in the Council’s MCUB Select program must, at the time of solicitation, qualify as an MCUB.

Procurements eligible for MCUB Select must not have any federal funding nor subcontracting opportunities and must have work scopes that can be performed by eligible MCUB firms.

Firms participating in the MCUB Select Program are considered eligible until awarded and successfully completed projects totaling $200,000 in contract value or three individual projects, whichever comes first.

The Minnesota Innovation Loans for Entrepreneurs (MILE) program provides interest-free loans to early-stage businesses developing or producing high-tech products or services in Minnesota. This program is an initiative of the Minnesota Investment Fund.

Provides training grants of up to $400,000 to educational institutions that partner with businesses to develop new job training or retraining for existing employees.

A cash or in-kind contribution from the contributing business must match program funds on at least a one-to-one basis (wages paid to employees during training may be counted, as well as any equipment used).

A “Short Form” application is available for grants of $50,000 or less to assist smaller businesses in getting the customized training they need.

Minnesota State Trade and Export Promotion (STEP) grant program awards funds to Minnesota businesses planning to grow their exports. It provides financial and technical assistance to qualifying Minnesota businesses with an active interest in exporting products or services to foreign markets.  Participants may be first-time exporters or companies currently exporting but looking to expand into new international markets.

This program provides interest-free, business loans of up to $20,000 to businesses that are adversely affected when certain employees are called to active military duty and to individual veterans who have returned from active duty and want to start their own business.

Foreign Trade Zones are commerce sites (industrial sites, buildings) set up in or near U.S. Customs ports of entry where merchandise is considered legally outside U.S. Customs territory. The zones are operated as public utilities by states, port authorities, other political groups, or corporations charted by the state.

Companies can use foreign trade zones to reduce duty payments, streamline supply chain costs and improve your competitive position in domestic and foreign markets.

There are eight General Purpose Zone sites in Minnesota, including six in the Minneapolis-St. Paul metropolitan area (FTZ#119), one site in Duluth (FTZ#51), and one site in International Falls (FTZ#259). Individual companies may apply to the U.S. Department of Commerce to designate an area of their facility as a Subzone. This situation is ideal for companies too far from a General Purpose Zone.

PACE is an innovative mechanism for financing energy efficiency and renewable energy improvements on private property. It allows a property owner to finance the up-front cost of energy or other eligible improvements and then pay the costs back over time through a voluntary assessment attached to the property. Eligible projects include HVAC, lighting, motors, compressed air, new manufacturing equipment, solar, wind, and geothermal. Qualifying properties include industrial/manufacturing, multi-family housing (5+ units), agriculture, nonprofit, and places of worship.

The tax credit for R & D expenditures is 10 percent, up to the first $2 million in eligible expenses. The credit is 2.5 percent for eligible expenses above $2 million.

Individuals involved in partnerships, S-corporations and limited liability companies are allowed to claim the credit against their individual income taxes. This opens up the tax credit to more small and medium-sized businesses.

SciTechsperience is a paid internship program that connects college students in science, technology, engineering and math disciplines with rewarding hands-on opportunities at Minnesota companies that need their skills. The focus is on strengthening Minnesota's STEM industries and developing an experienced and well trained workforce. Learn more about Scitechsperience.

SCORE provides free, confidential business advice through volunteer business experts. SCORE is a nonprofit resource partner of the U.S. Small Business Administration (SBA). You can meet with one or several mentors via email, video chat, or face-to-face in the local chapter. Mentors are experienced in all aspects and stages of business development, whether starting a business or growing an existing company.

The SBDC provides free, confidential professional expertise and guidance to established businesses. Business consultants provide relevant, realistic, and sound advice in several areas, including: access to capital and loan packaging; financial analysis and assessment; accounting systems and literacy; marketing and research; marketing plan development; feasibility analysis; startup assistance; business plan development; electronic commerce/web site development; and succession and strategic planning.

Transportation Economic Development Infrastructure (TEDI) Program is a competitive grant program available to communities for road and public infrastructure projects that create jobs and support economic development.

Women Venture is a non-profit organization providing resources and support to help women start and grow profitable and sustainable businesses. They train entrepreneurs, advise businesses, provide loans, and create jobs.

Businesses headquartered in Minnesota with fewer than 25 employees and engaged in the research or development of qualifying high-technology can qualify for up to $1 million in angel tax credits.

The program provides production payments to encourage commercial-scale production of advanced biofuels, renewable chemicals, and thermal energy production from biomass.

The Border-Cities Enterprise Zone Program provides property tax credits, debt financing credit on new construction, sales tax credit on construction equipment and materials, and new or existing employee credits to qualifying businesses in the border cities of Breckenridge, Dilworth, East Grand Forks, Moorhead, and Ortonville, as well as in the Development Zone of Taylor's Falls.

Companies that build new data or network operation centers of at least 25,000 square feet and invest $30 million, or refurbish an existing center of at least 25,000 square feet and invest $50 million, qualify for sales tax exemptions for 20 years on computers and servers, cooling and energy equipment, energy use and software, and they pay no personal property tax ever. Companies have 48 months to complete a new center and 24 months to complete a refurbished center.

Companies that build new data or network operation centers of at least 25,000 square feet and invest $30 million, or refurbish an existing center of at least 25,000 square feet and invest $50 million, qualify for sales tax exemptions for 20 years on computers and servers, cooling and energy equipment, energy use and software, and they pay no personal property tax ever. Companies have 48 months to complete a new center and 24 months to complete a refurbished center.

Qualifying projects receive sales tax exemptions for up to 20 years on:

• Computers and servers
• Cooling and energy equipment
• Energy use
• Software

And pay no personal property tax. Ever.

In addition, Minnesota DOES NOT tax:

• Personal property
• Inventories
• Utilities
• Internet access
• Information services
• Custom-created software

The DBE program is a project for increasing the participation of women- and minority-owned businesses in the award of federally assisted contracts. See current contracting opportunities at the Council.

The Council has established goals for contracts for fiscal years 2017-2020:

• 15% overall DBE for transit contracts
• 7% Minority (MBE) and 7% Woman (WBE) Fair Share for environmental service contracts

Applying for DBE Certification

The Minnesota Unified Certification Program consists of a group of state and local agencies who work together to certify firms as DBE’s. The current certifying agencies are City of Minneapolis, Metropolitan Airports Commission, Metropolitan Council and Minnesota Department of Transportation. The MNUCP acts as a one-stop-shop for businesses that qualify as a DBE or wish to submit an application for DBE status.

Directory of DBE-Certified Firms

The DBE directory lists firms certified by the MNUCP as DBE Businesses, updated biweekly. Businesses in this directory can be based in any state, but are certified to work in Minnesota. Find detailed information for each firm by searching the MNUCP DBE Directory.

DBE Participation Contract Goals for Federally Funded Projects

Project contracts will include DBE participation goals if they meet the following three requirements:

• The project is federally funded
• There are opportunities for subcontractors
• The contract value is more than $50,000?

OEO staff sets specific participation goals on each project contract. All bidders/proposers for projects with DBE goals will be required to meet the DBE goal percentage. If the bidder/proposers is not able to meet the goal they may receive a waiver from OEO based on their Good Faith Efforts.

The U.S. Department of Homeland Security's Citizenship and Immigration Services division (USCIS) administers the Immigrant Investor Program, also known as EB-5.

The program is intended to stimulate the U.S. economy through job creation and capital investment by offering foreign investors a permanent resident visa for investing $1 million (or at least $500,000 in a Targeted Employment Area) and creating or preserving at least 10 jobs for U.S. workers.

DEED's Emerging Entrepreneurs Fund primarily supports micro-enterprises and small businesses with loans of up to $150,000 to businesses owned by minorities, low-income persons, women, veterans, and/or persons with disabilities. Businesses located in low-income areas will be given priority. The program will finance a variety of start-up and expansion costs, including normal expenses such as machinery and equipment, inventory and receivables, working capital, new construction, renovation, and site acquisition. Financing of existing debt is not permitted.

DEED provides grant funds to nonprofit lenders, which use these funds for loans.

Businesses participate in a nine-month long program with peer CEOs, including customized business research, as well as practical tools and techniques to help businesses grow. Privately-held businesses with 10-99 employees, annual revenue between $1 to $50 million, and show a potential for job creation and longer-term business growth are eligible.

Provides financing to help add new workers and retain high- quality jobs in industrial, manufacturing, and technology-related industries. Funds are awarded to local units of government who provide loans to assist expanding businesses.

Projects must meet minimum criteria for private investment, number of jobs created or retained, and wages paid. At least 50 percent of total project costs must be privately financed through owner equity and other lending sources. Maximum of $500,000 per project.

Terms are up to 20 years for real estate and up to 10 years for machinery and equipment. Interest rates are negotiated.

The Job Creation Fund provides awards of up to $500,000 and capital investment rebates of up to $500,000 for qualifying businesses.

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.

The City of Shoreview works to build a strong business community by supporting business growth, retention, expansion and attraction. We provide education and networking opportunities and provide communication between businesses and city officials. In addition, Ramsey County’s Open to Business program has been designed to provide direct support to Shoreview’s businesses.

The Open to Business program provides FREE direct technical assistance and other forms of support to small business owners and entrepreneurs. All current business owners and aspiring entrepreneurs intending to establish, purchase or improve a business within the county are eligible and encouraged to participate.

Services Available:

• Business plan development.
• Feasibility analysis.
• Cash flow and financing projections.
• Marketing planning and material preparation.
• City and state licensing and regulatory assistance.
• Loan packaging and other assistance in obtaining financing.

Funding Available:

• Capital through MCCD’s Emerging Small Business Loan Program for qualifying businesses.
• Ramsey County Small Business Loan Program.

Open to Business is a partnership between Ramsey County and the Metropolitan Consortium of Community Developers (MCCD).

Ramsey County Workforce Solutions supports the success of area businesses through quality workforce development services. With access to over 25,000 job candidates, Workforce Solutions will help find your next staff member or up-skill your current workforce. Services are free and made available by the public workforce and economic development system.

Loans meant to serve as gap financing and designed to leverage other financing programs and private financing provided by the commercial banking community. Projects must align with the City’s Revolving Loan Fund Policy, including specific hiring and wage goals.

The City is allowed to refund a portion of a company’s property taxes for a set period of time when a company makes improvements on vacant land or a building that will result in higher property taxes being paid.  Projects must meet the "but for" test and align with the City’s Business Subsidy Policy, including specific hiring and wage goals.

The City is allowed to create Tax Increment Financing Districts for the purpose of redevelopment, economic development, and public infrastructure related to a project. Generally, the costs for development or redevelopment are fronted utilizing pay-as-you- go financing; once complete, the development is then reimbursed from the difference in property tax values between the original value of the property and the value after the project is completed. Projects must meet the “but for” test and align with the City’s Business Subsidy Policy, including specific hiring and wage goals.

BizRecycling is a program to help businesses in Ramsey County and Washington County start, expand, improve, and manage business recycling, including organic waste collection, such as food waste. We work with businesses of all sizes and types: restaurants, offices, multi-unit residential properties, schools, clinics, golf courses, warehouses, and more.

The BizRecycling program was started in 2013 to help East Metro businesses reduce waste and recycle better. BizRecycling connects businesses with recycling experts who can help identify recycling and waste reduction opportunities. We offer free on-site consultations, technical assistance, expert advice and guidance. Businesses can request free container labels for their trash and recycling bins. We also have business recycling grants available (up to $10K per business!) to start or improve business recycling.

The BizRecycling program is an initiative of Ramsey/Washington Recycling & Energy (R&E). R&E was formed over 30 years ago by Ramsey and Washington Counties as a joint powers agreement. R&E is responsible for administering joint solid waste resource recovery activities and other selected programs on behalf of the two counties. The Project Board is comprised of nine (9) elected county commissioners, five from Ramsey County and four from Washington County. The BizRecycling program is staffed by members of the counties’ respective public health departments and is served by a variety of consultants.

How It Works