obtain financing for a small company in Minnesota | help businesses

Minnesota is one of the best states to open a business in, according to John C. Hottinger, a consultant writer for MinnPost.com. The government commitment to educating its work force and quality standards of life in our communities to attract businesses. However, the financial climate in 2010 was to make business loans harder in Minnesota and other states, such as bankers have limited funds business to profitable companies. As you make plans to open a small business in Minnesota, are turning to business loans, tax incentives and grants for funding to start your business.

1. Apply for a business loan from the Small Business Administration. These are federal loans available to business owners across the country. Minnesota Business Finance Corporation (MBFC) originate and service SBA 504 loans from the Small Business Administration. MACF site describes the program as "economic development financing specifically designed to stimulate private sector investment in long-term capital to increase productivity, create new jobs and increase local tax base." Some of the loans available are the basic 7 (a), Caplin, Patriot Express, SBAExpress and rural and small Advantage. Other loan programs long-term fixed asset loans and export.

2. Apply for an SBA 7 (m) micro-credit with a lender that will provide micro-credit also provides technical assistance to small businesses. These lenders operate only in their service areas. This is not a program statewide. Some include the Neighborhood Development Center in St. Paul, the Southwest Initiative Foundation in Hutchinson, and the Northwest Minnesota Foundation in Bemidji.

3. Obtain funding from venture capital from a Small Business Investment Center (SBIC) in your region of Minnesota. A list of SBICs can be found on the website of the Small Business Administration. Some of them include Medallion Capital, Inc., Burnsville, Milestone Growth Fund, Inc., Minneapolis, and Agio Capital Partners I, LP, in Edina.

4. Apply for a business program of tax incentives the Department of Employment and Economic Development Minnesota. Several programs are available, including the border towns of Enterprise Zone Program and the Seed Investment Credit Program. The department also offers several loan programs to businesses, including reservists from Minnesota and Veterans Loan Program.

5. Contact the U.S. Department of Agriculture (USDA) Rural Development Office for information on its loans and grants to farmers and rural Minnesota small business owners. The USDA Rural Development Office in Minnesota is
   
   
   
   410 Farm Credit Building Service
   
   375 Jackson Street
   
   St. Paul, MN 55101
   
   Contact the USDA Rural Develoment office 651-602-7800.

6. Expand your business in one area of Minnesota Job Opportunity Building. This program allows businesses to develop in areas targeted for development outside the Twin Cities area, and provides tax exemptions and local government.

7. Contact your local Small Business Development to see if local funds are available to small businesses. You can also find information on business finance from the local chamber of commerce, professional associations, professional associations related to the type of business you want to start. Some subsidies to small businesses in particular for women and minorities may also be available.

help start a small business