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Minnesota creates $6.7 million angel fund

Staff writer ▼ | December 17, 2013
Entrepreneurs are about to get a needed boost of funding to start, expand, and sustain new businesses in Minnesota. Governor Mark Dayton and DEED Commissioner Katie Clark Sieben announced the state has created a new $6.7 million Angel Loan Fund that will provide no-interest loans of up to $250,000 for startup businesses.
St Paul
St PaulEntrepreneurs are about to get a needed boost of funding to start, expand, and sustain new businesses in Minnesota. Governor Mark Dayton and DEED Commissioner Katie Clark Sieben announced the state has created a new $6.7 million Angel Loan Fund that will provide no-interest loans of up to $250,000 for startup businesses.


Starting now, entrepreneurs across Minnesota can begin applying for these loans to help with business startup costs, working capital, equipment purchases, construction, inventory financing, franchise funding, and more.

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 state has set a goal of attracting at least $10 of private investment for every dollar provided through SSBCI.

The programs, including the no-interest Angel Loan Fund, are expected to spur at least $150 million in lending to small businesses statewide based on U.S. Treasury requirements, and help create an additional 3,000 new jobs in Minnesota. Given the success of SSBCI programs, the Minnesota Department of Employment and Economic Development (DEED) estimates this new investment could leverage as much as $261 million in private investment to small businesses in Minnesota over the next three years.

The state's new Angel Loan Fund will be administered by DEED and funded using a previously underutilized portion of federal dollars available through the State Small Business Credit Initiative. By obtaining a waiver from the federal government, DEED has repurposed that funding to stimulate private sector lending and improve access to capital for small businesses that cannot obtain conventional bank loans for expansion projects and job creation.

The Angel Loan Fund is a supplement to Minnesota's successful Angel Tax Credit, which has already delivered more than $137 million to help hundreds of startup companies across the state since that program was launched in July 2010. Businesses interested in obtaining assistance from the new Angel Loan Fund must first be certified in the Angel Tax Credit Program.


 

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