ST. PAUL, MINN. – Minnesota’s economy is already booming in comparison to just a few years ago and now – entrepreneurs with a vision could jump start their ideas thanks to a new loan program. The Department of Employment and Economic Development announced the state has created a new $6.7 million Angel Loan Fund using federal dollars that the state was allowed to repurpose. The loan fund will provide no-interest loans of up to $250,000 for startup businesses.
The Angel Loan Fund is now one of four programs available to help small businesses under the agency’s State Small Business Credit Initiative (SSBCI). The programs are expected to help generate at least $150 million in lending to small businesses statewide, and help create an additional 3,000 new jobs in Minnesota. The state has also set a goal of attracting at least $10 of private investment for every dollar provided through SSBCI. Due to these programs past successes, DEED estimated this new investment could leverage as much as $261 million in private investment to small Minnesota businesses over the next three years.
Senator David Tomassoni (DFL-Chisholm) chairs the Economic Development Committee and supports many of DEED’s new jobs funding initiatives.
“New businesses are essential to maintaining and growing Minnesota’s economy, but many lack access to capital in the early stages of business development. The money used in the new Angel Loan Fund can help jump start entrepreneurs’ ideas and hopefully get successful business ideas off the ground,” Senator Tomassoni said.
The funds are being made available at an important time. Venture capital funding is at its lowest point since the 1990’s, with entrepreneurs facing a tight lending market and tough competition for available resources. For additional information about the Angel Loan Fund, visit the DEED website at www.tinyurl.com/AngelLoanFund