Minnesota Small Business Grants and Loans: SBDC, Minneapolis Programs and Saint Paul STAR
Minnesota Small Business Grants and Loans: SBDC, Minneapolis Programs and Saint Paul STAR
This guide is informational, not legal or tax advice. Program terms, deadlines and fees change, so confirm every figure with the named agency or city before you plan around it.
Minnesota does not have a single application for small business money. Help is spread across free state advising, city programs in Minneapolis and Saint Paul, and location-specific programs. The state has 87 counties, about 853 cities and about 1,780 townships, so where your business sits decides which local programs you can reach. The right first step depends on your location and on what you need: advice, a loan, or money for a physical improvement.
This guide covers the programs verified for this page, what each one asks for, and how to get your paperwork ready before you apply.
Start with the free Minnesota SBDC network
The Minnesota Small Business Development Center network is administered by the Minnesota Department of Employment and Economic Development (DEED). It provides free one-on-one consulting through nine regional centers. Host organizations change over time, so find your region's current office on the DEED SBDC page instead of relying on a name from an older article.
The SBDC does not hand out checks. Its value is in getting you ready for the lender, city program or grant review that comes next. Advisors can help you:
- Test whether your business plan and projections hold up under questions
- Organize the financial statements and cash flow forecast a lender will ask for
- Work out which registrations and licenses your activity requires
- Match your project to the city and federal programs in your area
For federally backed loans, the U.S. Small Business Administration's Minnesota district page at sba.gov/district/minnesota points to local offices and resources. Bring your SBDC advisor into the conversation before you walk into a lender's office. A consultant who has reviewed your numbers can spot gaps that a loan officer would otherwise flag after you have already applied.
Minneapolis: city loans and technical help
Minneapolis does not issue a general business license. It licenses by category, and its economic development programs are run separately from licensing. The programs below are the ones verified for this guide. Start with the city's Business Development Team at 612-673-5094.
| Program | What it offers | Next step |
|---|---|---|
| Business Technical Assistance Program | Technical help for Minneapolis businesses | Ask the Business Development Team about current services and eligibility |
| Two Percent Loans | City loans for eligible businesses | Confirm current terms and eligibility with the Business Development Team |
| Business Development Fund loans | City loans for eligible business projects | Confirm current terms and eligibility with the Business Development Team |
| City match of a private lender's loan | The city matches a private lender's loan up to $75,000 | Confirm the match rules and that your lender is willing to participate |
| Small Business Resiliency Fund | A $7 million fund created after Operation Metro Surge; it was time-limited | Treat as past or closing. Ask the city whether any funds or applications remain |
The city match only works if a private lender is already prepared to make the loan. Bring a lender's written interest into your first call with the city, and ask whether the lender must meet any criteria before the match applies.
Do not build a 2027 plan around the Small Business Resiliency Fund. It was time-limited, so the city should be asked directly whether anything is still open before you count on it.
Saint Paul Neighborhood STAR grants
Neighborhood STAR provides capital improvement grants to businesses and organizations in Saint Paul. The program is funded by the city's half-cent sales tax. Capital improvement grants pay for physical work, such as renovating a storefront or building out a space. They generally do not pay for day-to-day operating costs. Confirm with the city which costs qualify before you put them in a budget.
Applicants can be for-profit businesses, nonprofits or public entities, as long as they are located in Saint Paul or doing business there. Projects must finish within two years.
2027 cycle dates:
- Applications open January 11, 2027
- Virtual workshop on January 21
- Deadline: February 19, 2027, at 4 p.m.
Missing the deadline by even a few minutes means waiting for a future cycle, so submit early and treat 4 p.m. on February 19 as the real cutoff. Use this sequence to prepare:
- Confirm eligibility. Make sure your business is located in Saint Paul or does business there, and that your entity is active on the Secretary of State's records.
- Define the project in writing. Describe the physical improvement, its purpose and the schedule for finishing it.
- Collect written cost estimates for every line item. Reviewers can question figures that have no written estimate behind them.
- Attend the January 21 virtual workshop. It is easier to ask about eligible costs live than to interpret them from the form alone.
- Plan the build inside the two-year window. Confirm with the city when the clock starts, then set your contractor timeline around it.
If your project includes equipment or building work that needs permits, start the permit process early. A grant that requires completion within two years leaves little room for a permit delay that you discover in month 20.
Get your business paperwork in order first
Lenders and grant reviewers usually want to confirm that your business is legally in place before they look at the project. Check these items before you apply.
- Entity filing. An LLC files Articles of Organization with the Minnesota Secretary of State. The fee is $155 online or in person, or $135 by mail. The annual renewal costs $0 and is due December 31. If the entity is not active and in good standing, a program may ask about it. Look up your filing at the Secretary of State business search.
- Assumed name. If you operate under a name other than your legal name, you need a Certificate of Assumed Name. It costs $50 online or in person, or $30 by mail. It must be published for two consecutive issues in a qualified legal newspaper in the county of your principal place of business, and failure to publish may make the certificate invalid. The certificate must be renewed annually at no charge. Assumed names are filed only with the Secretary of State, and LLC and corporation formation does not require publication.
- Sales tax registration. Register with the Minnesota Department of Revenue before you make taxable sales. The state sales tax rate is 6.875 percent, with local taxes added on top. This registration is a tax account, not a license. The Department of Revenue's new business registration page is the starting point.
- Licenses and permits. Minnesota has no general statewide business license. Licensing is by trade or activity, through agencies such as the Department of Labor and Industry, the Minnesota Department of Health, the Minnesota Department of Agriculture, the Alcohol and Gambling Enforcement Division and the Office of Cannabis Management, along with local zoning and city licenses by category. Search License Minnesota by topic, agency or A to Z to find what your activity needs.
Filing the entity with the Secretary of State is a filing, not a license. Keep that distinction clear when a program asks for proof that you are licensed. The question is usually whether your activity is licensed, and that depends on your trade, not on your formation paperwork.
Pull together your application packet
Most city and SBDC-supported programs ask for a similar set of documents, though each program has its own forms. Prepare these before you contact a program:
- A one-page project summary that states the amount you need and what it will pay for
- A written business plan with a clear description of your customers and revenue
- Cost estimates for every item, with the vendor name and date on each quote
- Business and personal financial statements, plus a cash flow forecast
- Proof of your entity filing, assumed name certificate if used, and sales tax registration
- A lender's letter of interest if you are applying for a city match
Keep copies of everything you submit. If a program asks a follow-up question, a complete file lets you answer within days instead of weeks.
Common questions
Is there a statewide Minnesota small business grant?
The programs verified for this guide are local or advisory. For state-level programs, check DEED's business help pages, since availability changes over time and some programs close when their funding runs out.
Do I need an LLC before I apply for a city loan?
This guide does not verify the entity requirement for each city program. Ask the program directly. Having an active entity and a sales tax account in place before you apply avoids the most common delay.
Should I start with a loan or a grant?
Start with the SBDC, then decide based on the project. A grant such as STAR fits a defined capital project with a fixed deadline and a two-year completion window. A loan fits a project you can repay from revenue or from a lender's commitment. Both require you to show a plan, so the advising step helps either way.
Disclaimer and next steps
This guide is informational only. It is not legal, tax or financial advice, and it does not create an attorney-client or accountant-client relationship. Program terms, fees and deadlines change, and the figures here were verified for this page only. Before you apply, confirm each number with the agency or city, and talk with a qualified attorney or CPA about your entity structure, tax position and loan obligations. The Minnesota Department of Revenue's main site is at revenue.state.mn.us, and the Secretary of State's home page is at sos.mn.gov.