Small Business Development

Small Business Development Loan

The Minnesota Agricultural and Economic Development Board (MAEDB) makes small business loans through the issuance of industrial development bonds backed by a state-funded reserve of 25%. Acquisition of land, building, machinery and equipment; building construction and renovations; development costs such as engineering, legal and financial fees. Working capital and refinancing are not eligible.

Real estate at maximum of 20 years; equipment at 10 years or 80% of useful life.
Bond issuance costs of 4% are capitalized with the loan principal. Ten percent of bond issue must be escrowed.
Market rate of interest for similar securities at the time bonds are sold

Interest Type

Interest Type
$500,000 minimum - $6 Million maximum

Eligibility / Requirements

Generally, 20% of the project costs must be privately financed through equity or other sources; 25% is required on equipment transactions. Manufacturing and industrial businesses located or intending to locate in Minnesota, as defined by Small Business Administration size and eligibility standards; generally, those with 500 employees or fewer. New capital investment resulting in a significant number of new jobs and other beneficial economic impacts.