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
$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.