Financing & Incentives
When it comes to starting or growing your business, Greater Mankato has a multitude of funding sources, including debt financing, equity, grants, tax incentives and resources.
Fraud and Identity Theft Prevention
Use this helpful guide from US Bank, to implement best practices and solutions to protect your business from fraud.
Financial Check-up at no Charge
Would your business benefit from a financial check-up at no charge to you? The Small Business Development Center in Mankato is positioned to analyze your financials using sophisticated software designed to give you the information needed to assess your business' financial health.
Debt Financing - Conventional (i.e. Banks)
Financial Institutions in Greater Mankato
Greater Mankato financial institutions can provide the fundamental financial services needed for your business as well as conventional financing tools.
Debt Financing - Public & Foundation
504 Corporation is authorized by the U.S. Small Business Administration to make SBA 504 loans up to 40% of a project cost for land, buildings and machinery as 'subordinate' debt to a bank's first lien (50% of project cost); leaving only 10% required by the borrower. Single use facilities, equipment and start-up businesses may require an additional 5-10% cash injection by the borrower. Contact 504 Corporation, Mankato at 507.625.6056 or the corporate office in Rochester, MN at 507.288.6442.
City of Mankato Municipal Revolving Loan Funds
Provides low interest, revolving loan funds primarily for industrial/service economic development (financial incentives form).
City Center Mankato Revolving Loan Funds
Provides low interest, revolving loan funds for reinvestment in Mankato's City Center.
Industrial Revenue Bonds
Utilizes proceeds from city-issued revenue bonds to acquire and construct sites and facilities. Lease payments made by the business enterprise to city government are used to service the bonds.
Provides grants to help add new workers and retain high quality jobs on a statewide basis. The focus is on industrial, manufacturing, and technology-related industries Grants are awarded to local units of government who provide loans to assist expanding businesses.
Region Nine Development Commission Loan Programs
Promotes the development of the region through intergovernmental cooperation, community development, and long-range planning and technical assistance.
Small Business Development Loan Program
For established manufacturers with fixed asset expansion costs in excess of $1 million and adding a substantial number of new jobs. Through industrial development bonds, the Agricultural and Economic Development Board can support a loan at below market interest rates.
Southern Minnesota Initiative Foundation (SMIF)
Invests in emerging businesses and the emerging workforce, helping businesses, local governments and nonprofit organizations find common ground, pool resources and achieve more.
US Department of Agriculture (USDA) Loan Programs
Loans available to support clean and renewable energy.
AngelPool Syndications
Businesses seeking angel financing interested in the opportunity to present to angel groups in the region at no charge, are encouraged to visit AngelPool. This resources is designed to get companies in front of investors. more info
Minnesota Angel Network (MNAN) was formed to promote a more active angel investment community in our state. MNAN educates entrepreneurs about preparations required to obtain investment capital and facilitates connections between angel investors looking to make investments and businesses that are seeking angel investment. MNAN assists companies in all major sectors of business, including but not limited to medtech, high tech, and cleantech. Involvement with MNAN is free to investors.
Minnesota Angel Investment Tax Credit
On April 1, 2010, the 25% Angel Tax Credit was signed into law. This credit was implemented to encourage investors to invest in early stage, high or new proprietary technology businesses. Minnesota Department of Employment and Economic Development (DEED) is administering the certification to businesses, investors and funds. Funding for years 2012-2014 is set at $12 million per year and complete information including applications are available on the DEED website. Businesses | Investors
Two Rivers Angel Investment Network (TRAIN)
Provides financing as part of the RAINSource Capital network. TRAIN is an LLC formed in Greater Mankato. The fund is capitalized at $800,000 with 16 accredited individual and institutional investors. Contact: 651.632.2143 or bjohnson@rainsourcecapital.com
Infrastructure assistance
The Greater Minnesota Business Development Public Infrastructure Grant Program provides up to 50 percent of the capital costs of the public infrastructure to help support the economic success of communities outside the seven-county metropolitan area. The Bioscience Business Development Public Infrastructure (BBDI) Program provides grants to local governmental units for up to 50 percent of the capital cost of the public infrastructure necessary to expand or retain jobs. The Small Cities Development Program awards grants to help develop or redevelop small communities through new or rehabilitating existing housing, constructing or rehabilitating public infrastructure, and assisting businesses and industries.
Minnesota Department of Commerce, Division of Energy Resources produces a list of state and federal funding opportunities on a regular basis. The list includes solicitations of proposals for energy or environmental grant funding or other incentives from a wide variety of organizations.
Minnesota Job Skills Partnership
Provides state grants to educational institutions for the development of training programs that meet specific business needs. The board also operates the Higher Education Loan Program (HELP), through which businesses may be awarded an interest-free loan to pay for worker training, and operates the Pathways Program, which provides grants for the development of training programs for individuals transitioning from public assistance to work.
The US Department of Agriculture offers a variety of grant opportunities related to renewable energy, bio energy, energy audits and much more. Visit their website regularly to view current grant opportunties available to private and non-profit organizaitons. Contact Naomi Lenz with questions 507-437-8247 Extension 127 | Naomi.Lenz@MN.usda.gov
*INFORMATIONAL EVENT* Take Advantage of Minnesota's Tax Credits
On February 26, Minnesota Cup will host a two hour informational session on the Minnesota Research & Development Tax Credit and Minnesota Angel Investment Tax Credit. These credits exist to foster innovation and growth of Minnesota companies. Businesses interested in learning more about the tax credits are encouraged to attend the informational meeting on February 26 and visit the DEED website. More info
JOBZ MINNESOTA (Job Opportunity Building Zones)
Tax-free zones have been established in the area outside the seven-county Twin Cities metropolitan region to promote job creation and business development. Businesses locating or expanding in these zones will receive exemption from most taxes. Tax exemptions include corporate income tax, sales tax on goods and services purchased for use in the zone, and commercial/industrial property taxes. JOBZ businesses will also receive tax credits for high-wage job creation.
Minnesota Angel Investment Tax Credit
On April 1, 2010, the 25% Angel Tax Credit was signed into law. This credit was implemented to encourage investors to invest in early stage, high or new proprietary technology businesses. Minnesota Department of Employment and Economic Development (DEED) is administering the certification to businesses, investors and funds. Funding for years 2012-2014 is set at $12 million per year and complete information including applications are available on the DEED website. Businesses | Investors
Research and Development (R&D) Tax Credit
Minnesota's new-and-improved research and development tax credit doubled and is inclusive to more business entities. Individuals involved in partnerships, S-corporations and limited liability companies may claim the credit against their individual income taxes. The tax credit for R&D expenditures is 10 percent, up to the first $2 million in eligible expenses. The credit is 2.5 percent for eligible expenses above $2 million. More info
Small Business Health Care Tax Credit
Healthcare insurance is a significant expenditure for small businesses. To offset the cost of health care insurance, the IRS is offering a credit. See if your business qualifies.
Finances the costs of a new real estate development by utilizing funds gained through increased property taxes generated from the development.
e-Services by Minnesota Department of Revenue
Online tool designed to allow businesses to view taxpayer records, file returns, make payments, and update registration information. Businesses are able to access information 24-7 and benefit from real time help.