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Launch Minnesota elevates and empowers the state’s innovation ecosystem by providing founders with access to capital, resources and statewide connectivity.
The “Launch List” is a curated, quarterly newsletter that provides investors with a detailed insight into Minnesota’s home-grown startups and the news affecting the investor community.
SSBCI Funding
Minnesota has received $97M from the U.S. Department of the Treasury for small business finance support. The first tranche of funding is $29.5M.
The State Small Business Credit Initiative (SSBCI) is part of the American Rescue Act of 2021 and includes $10B for state, territory and tribal business finance programs.
DEED will launch a variety of programs to utilize these dollars to benefit startups and small businesses. The funding will address current gaps in funding to propel business growth.
DEED's new Small Business Hub has the latest news on SSBCI.
Here is a summary of the programs:
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Program Name
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Funding
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Typical Customer
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Customer Application
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Anticipated Schedule
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Minnesota Loan Guarantee Program
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Guarantees up to $800,000 with a .25% guarantee fee on loans enrolled by approved lenders
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Minnesota-based small businesses eligible under SSBCI guidelines and using funds for eligible business purposes
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Apply with an enrolled bank, credit union CDFI or nonprofit lender
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Lender enrollment application
available
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Growth Loan Fund
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Loans from $100,000 to $400,000 based on 20% of the total investment in a defined funding round, not to exceed 12 months
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Minnesota-based early-stage businesses that have raised less than $250,000 or slightly later-stage businesses that are not yet ready for a Series A round
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Apply with DEED
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Application available November 2022
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Direct Investment Venture Capital
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Venture capital investments
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Minnesota-based seed stage and early-stage startups
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Apply with University of Minnesota
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Information available from U of M November 2022
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Multi-Fund Venture Capital
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Fund-level venture capital investments
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Minnesota-based venture capital funds
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Apply with University of Minnesota
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Information available from U of M November 2022
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Small Business Loan Participation Program
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Participations will range from $10,000 to $250,000
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Minnesota-based small businesses eligible under SSBCI guidelines and using funds for eligible business purposes
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Apply with an approved lender
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Request for Proposals anticipated November 2022
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Automation Loan Participation Program
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Loans up to $500,000, 5- to 7-year term, 1% interest rate, private financing match required
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Minnesota manufacturing, distribution, technology and warehousing businesses with fewer than 500 employees
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Apply with DEED once source of private matching funds has been identified
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Application available December 2022
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For additional information about each program, contact ssbci.deed@state.mn.us
New Launch MN Grantees
DEED has awarded $1,189,500 in Launch Minnesota Innovation Grants this fiscal year to 43 local companies. 26 of these grants went to targeted founders, which Launch MN defines as BIPOC, veteran or woman-owned businesses, or are in greater Minnesota.
Since its inception during the 2019 legislative session, Launch Minnesota has awarded 245 Innovation Grants totaling $6M to 176 unique grantees – accelerating the growth of startups and amplifying Minnesota as a national leader in innovation.
The program has $3M this biennium, $1.5M each fiscal year to provide grants to high-growth startups. Launch Minnesota has $310,500 remaining this fiscal year, which ends June 2023.
Get to know our new grantees
MN Venture Event
Launch Minnesota is collaborating with the University of Minnesota, The Medical Alley Association and the MN SBIR/STTR Accelerator to organize another quarterly MN Venture event this fall. This event series allows Minnesota-based startups to pitch to local, regional and national investors.
MN ATC Program Stats Released
In 2022, 37 Minnesota businesses received investments through the Angel Tax Credit (ATC) program. 44% of businesses were targeted businesses: Woman-owned businesses accounted for 21% of total tax credits, the largest percentage of any targeted group, followed by BIPOC-owned businesses at 15% and Greater MN businesses at 12%.
DEED’s ATC analysis also found that fund-based investors made more investments than independent investors. However, their total, median and maximum investment amounts were considerably lower, which also lowered their tax benefits.
Learn more about ATC and add your fund to our site so startups know when and how to find you!
If you have questions, please contact the Launch MN team:
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