ST. PAUL, MN – Governor Mark Dayton and Lt. Governor Tina Smith today announced that the Minnesota Department of Employment and Economic Development (DEED) has selected 23 nonprofit organizations to participate in a new statewide lending program designed to provide funding to businesses that may experience difficulty accessing capital.

 

“With this funding, more Minnesotans will have the opportunity to grow businesses across our state, supporting good jobs and strong local economies,” said Governor Mark Dayton. “We must continue working to expand economic opportunities for communities of color, women, veterans, and people with disabilities across our state, to build a better Minnesota for everyone.”

 

The new statewide program aims to help increase economic opportunities for businesses owned by minorities, women, veterans, low-income individuals, and/or persons with disabilities. It replaces the Urban Initiative program, which served low-income communities in the Twin Cities metropolitan area.

 

“These loans will help Minnesotans from communities that have historically struggled to access capital get the resources they need to start or grow businesses,” said Lt. Governor Tina Smith. “Expanding economic opportunities for communities of color, women, veterans, and people with disabilities is essential to building an economy that works for everyone, everywhere in Minnesota. I am pleased the State is partnering with these 23 leading non-profit organizations to connect these resources to Minnesota’s emerging entrepreneurs.”

 

As part of the new Minnesota Emerging Entrepreneur Loan Program, DEED will award a combined total of $2 million to these organizations, which serve communities throughout Minnesota. These organizations will, in turn, make loans ranging from $5,000 to $150,000 to small businesses across the state. All loans will be approved by DEED, and repayment of funds will go into a revolving loan fund.

 

During the 2016 Legislative Session, Governor Dayton and Lt. Governor Smith advocated for a $100 million investment in high-impact strategies to eliminate economic and racial disparities through education, training, work experience, housing, business development, and community development. The Minnesota Legislature eventually approved $35 million for these initiatives, which was signed into law by the Governor last June.

 

“DEED is excited to work with lenders, many of whom are new to DEED programs and who will help engage all of our Minnesota communities more effectively,” said DEED Commissioner Shawntera Hardy. “We look forward to ensuring that these loans are meeting the needs of the businesses and helping to level the playing field in the marketplace.”

 

A review team made up of individuals from DEED and external organizations approved the 23 lenders based on eligibility criteria that included the organization’s background, business operations, experience working with the targeted populations, and the timeline and budget each organization submitted. During the application process, DEED facilitated workshops for potential lenders in Brainerd and St. Paul.

 

Multiple factors were used to determine the award including the capacity of the organization to meet the program requirements, the organization’s overall existing loan balance, the size of proposed loans, past participation, performance in DEED loan programs, and recent state funding the organization has received.

 

The following is a list of the organizations and the amount of loan funding each is allocated to receive:

 

·   Metropolitan Consortium of Community Developers, Minneapolis, $225,000. The consortium has a variety of programs designed to improve the wealth and resources of the Twin Cities’ communities, including loans, entrepreneur development, and business assistance.

 

·   The Entrepreneur Fund, Duluth, $225,000. The group offers small business financing and strategic services to help entrepreneurs launch and grow businesses in northeastern Minnesota.

 

·   African Development Center of Minnesota, Minneapolis, $180,000. The organization, with offices in Minneapolis, Rochester, and Willmar, works with African immigrant communities in Minnesota to grow businesses through micro-lending and technical assistance, building wealth, and promoting community reinvestment.

 

·   Central Minnesota Development Company, Andover, $150,000. The group strengthens Minnesota’s economy by providing financing for fixed assets to help small businesses grow.

 

·   Neighborhood Development Center, St. Paul, $100,000. The center assists entrepreneurs through training, technical assistance, lending, and business incubators in low-income neighborhoods.

 

·   WomenVenture, Minneapolis, $100,000. The organization helps women attain economic self-sufficiency, and has a variety of financial services, including a microloan fund and technical support to help women start or expand small businesses.

 

·   Metropolitan Economic Development Association, Minneapolis, $100,000. The association provides business development services, access to capital, and corporate and governmental market support for minority entrepreneurs.

 

·   Latino Economic Development Center, Minneapolis, $100,000. The center offers a variety of projects and services to create economic opportunities for Latinos statewide, including loan assistance for small and medium-sized businesses.

 

·   First Children’s Finance, Minneapolis, $100,000. The organization works to stabilize, improve and expand high-quality childcare businesses serving low and moderate-income families by providing financing, training, and consulting assistance.

 

·   Southwest Initiative Foundation, Hutchinson, $100,000. The foundation works in several key areas, including entrepreneurship and business finance, throughout southwestern Minnesota and operates the online Minnesota Center of Rural Entrepreneurship.

 

·   Hmong American Partnership, St. Paul, $80,000. The organization provides culturally and linguistically appropriate services, including technical assistance and loan capital, to support to businesses owned predominantly by immigrants.

 

·   Initiative Foundation, Little Falls, $75,000. The foundation’s mission is to build healthy communities in central Minnesota, which it accomplishes through loans and services to small businesses, technical assistance, and training programs.

 

·   Northland Foundation, Duluth, $75,000. The foundation works toward a thriving northeastern Minnesota region through its 30-year-old Business Finance Program and newer tools designed to enhance credit and provide quick turn fixed asset business loans.

 

·   Community and Economic Development Associates, Chatfield, $60,000. The group assists communities and businesses primarily in southeast Minnesota and provides small business assistance including business plan development, financial packaging, marketing, and micro-lending.

 

·   Southern Minnesota Initiative Foundation, Owatonna, $50,000. The foundation provides grants, loans, technical expertise, and other services to encourage economic growth in 20 counties in southern Minnesota.

 

·   North Central Economic Development Association, Staples, $50,000. The group provides gap and micro-loan financing to new and expanding businesses in north central Minnesota.

 

·   Northside Economic Opportunity Network, Minneapolis, $50,000. The organization is focused on North Minneapolis where it works to expand economic opportunities and build wealth through entrepreneurship.

 

·   Northwest Minnesota Foundation, Bemidji, $50,000. The foundation works in northwestern Minnesota to address economic challenges through its Entrepreneur Development and Business Finance Programs.

 

·   Worthington Regional Economic Development Corporation, Worthington, $50,000. The group promotes and actively assists business growth and job creation in Nobles County with business plans, gap financing, and other business development services.

 

·   4-Directions Development, Red Lake, $20,000. The organization provides development services and loans for entrepreneurs and small businesses on the Red Lake Reservation and surrounding communities.

 

·   African Economic Development Solutions, St. Paul, $20,000. The organization offers culturally-intelligent services to help African immigrants in the Twin Cities achieve entrepreneurial success, including technical assistance, business development, and micro-lending.

 

·   Greater Bemidji, Bemidji, $20,000. The group works to drive development and promote prosperity in the greater Bemidji region through promotion of entrepreneurship and innovation in the region and micro-loans to area small businesses.

 

·   Immigrant Development Center, Moorhead, $20,000. The center builds business and economic skills in the low-income immigrant and refugee population of the Fargo-Moorhead area, including technical assistance and micro-lending.

 

For more information about the Emerging Entrepreneur Program visit the Minnesota Department of Employment and Economic Development website: http://mn.gov/deed/.