The Small Business Loan Participation Program (SBLPP) is part of the State Small Business Credit Initiative (SSBCI). DEED will purchase 25% to 30% participations in loans made by approved non-depository Community Development Financial Institution (CDFI) and nonprofit lenders. Lenders are responsible for all credit decisions and loan terms. Borrowers must apply directly with an approved lender.
Purchased participations will range from $10,000 to $250,000. Loan proceeds must be used for eligible business purposes, which may include equipment purchases, working capital and startup costs, as well as real estate purchase, construction, renovation, or tenant improvements of an eligible place of business. Loans may not be used for passive real estate.
Businesses interested in a loan may apply with an approved lender. DEED does not make direct loans through the program and is not responsible for lender credit decisions. The lender directory will be available soon.
DEED does not make direct loans through the program and is not responsible for lender credit decisions.
Each lender uses its own established application and underwriting processes. The lender you choose will provide instructions on how to apply for a loan. Lending decisions will be based on the lender's underwriting and loan evaluation criteria and are at the sole discretion of the lender. The rate, term, and collateral requirements will be set by the lender's policies.
Eligible borrowers need to be located in Minnesota and have fewer than 500 employees. The loan must be used for eligible business purposes. Additional details about eligible business types and use of loan proceeds, as well as answers to other common questions about the program, are available in the list of Frequently Asked Questions under the FAQs tab.