Minnesota is home to thousands of small businesses that help drive the state’s economy. From rural shops to urban startups, these businesses create jobs, support local communities, and fuel innovation. But even the best business ideas often need financial help to get off the ground—or to survive tough times. That’s where Minnesota small business grants come into play.
Unlike loans, grants don’t need to be repaid. They can cover anything from startup costs and hiring to building repairs and pandemic recovery. In this article, we’ll walk through the different types of grants available in Minnesota, how to apply, and what to expect along the way.
How Business Grants Support Growth in Minnesota
When it comes to small business grants, Minnesota offers several grant programs that help businesses expand, create jobs, and drive innovation. Through agencies like the Department of Employment and Economic Development (DEED), businesses can apply for funding that supports hiring, infrastructure improvements, or product development. Special initiatives, such as Launch Minnesota and the Emerging Entrepreneur Loan Program, focus on startups and underserved entrepreneurs. These programs aim to build a more inclusive and sustainable business environment across the state.
Local Resources Offering Grant Assistance in Minnesota
Opportunities don't stop at the state level. Many counties and cities offer local grants for small businesses in Minnesota to help businesses grow or recover from hardships.
Community Programs and Initiatives
Cities like Minneapolis and St. Paul have offered grant programs that support business improvement projects, commercial space upgrades, or emergency relief. Some grants are part of neighborhood development plans, designed to boost small businesses in specific areas or along business corridors.
Working With Local Agencies
Your local chamber of commerce or county economic development department can be a great place to find up-to-date information on Minnesota small business grants. Many of these organizations offer free guidance on grant applications or direct you to available opportunities in your region.
Sector-Specific Grants and Incentives
Some Minnesota state grants for small business are reserved for specific industries that are considered vital to the state’s future.
Support for Agriculture and Rural Businesses
Minnesota’s Department of Agriculture has programs that support farm-based businesses, food producers, and others in the agri-business space. These grants may assist with production improvements, environmental upgrades, or new market expansion.
Programs for Innovation and Clean Energy
The state encourages businesses working in renewable energy, sustainability, and tech innovation. While these grants are competitive, they can provide large amounts of funding for projects that meet specific criteria, like reducing emissions or developing new technology.
Finding Federal Help for Minnesota Businesses
Although not unique to Minnesota, federal grants are still an important option for small business owners in the state.
Where To Look for National Funding
Grants.gov is the main website for finding federal grants. You’ll find funding from agencies like the U.S. Department of Agriculture (USDA), the Department of Energy (DOE), and the Small Business Administration (SBA). The SBA also funds research-related grants like SBIR and STTR, which are useful for tech-focused startups. There are also other corporate-funded resources, such Fast Break grants, which can inject valuable finances into any small business throughout the US.
Getting Help With the Application
Applying for federal funding can be complex, but help is available. Minnesota’s network of Small Business Development Centers (SBDCs) offers free one-on-one assistance to help you through the process.
Nonprofit and Private Sector Grant Opportunities
Not all grants come from the government. In Minnesota, some private foundations and business groups also provide funding.
Local Foundations and Pitch Contests
Some Minnesota-based foundations run business grant contests or offer one-time grants to support economic growth. Pitch competitions, business plan challenges, and accelerator programs often include grant awards for winners.
Grants That Support Inclusive Entrepreneurship
Private funders often focus on supporting diversity in business. That includes Minnesota grants for women's small business, people of color, veterans, and/or people with disabilities. These opportunities may be smaller in size, but they can be a valuable stepping stone for early-stage businesses.
Getting Ready To Apply for a Minnesota Small Business Grant
If you’re applying for a small business grant, Minnesota lenders require certain factors and details, so it takes preparation. It’s important to understand the requirements before you apply.
What You’ll Need To Qualify
Most State of Minnesota small business grants require proof that your business is officially registered and in good standing. You may need to submit financial statements, a business plan, and a clear explanation of how you’ll use the funding. Some grants also have job creation or investment requirements.
How To Strengthen Your Application
A strong application tells a clear story about how the grant will help your business succeed. Be honest, specific, and focused. If possible, include data to back up your plans. You can also seek help from local business centers or SCORE mentors to review your materials before submitting.
Exploring Other Funding Avenues for Small Businesses in Minnesota
Some Minnesota small business grants can be hard to get, and many businesses use more than one funding source. Luckily, Minnesota also offers other types of support.
State Loan Programs and Tax Incentives
Minnesota has several low-interest loan programs and tax credits for businesses investing in growth, hiring, or technology. These can be used alongside grants or when grant funds aren’t available.
Using Crowdfunding and Private Financing
Online crowdfunding platforms or local angel investors are other ways to raise startup funds. These options may be more flexible but come with different risks and responsibilities than grants.
Final Thoughts on Minnesota Small Business Grants
A Minnesota grant for small business owners can help fuel your goals. Whether you need help with hiring, recovery, or innovation, there are opportunities available. While grants are competitive, they are worth exploring—especially if you take time to prepare and seek support. Many Minnesota organizations are ready to help you navigate the process. You don’t have to do it alone.
