Small Business Grants in Minnesota
The funding programmes below are administered mainly by the Minnesota Department of Employment and Economic Development (DEED). Some of it is not free money.
Which Minnesota grants fit your business?
Answer 7 quick questions and we sort the 12 programs on this page into likely fits and long shots. Nothing personal is asked or stored, and final eligibility is always decided by the granting agency.
Minnesota Small Business Grant Programs
State-administered funding programs available to Minnesota small businesses. Verify deadlines directly with the granting agency before applying.
PROMISE Act Grants
Minnesota DEED (via Minnesota Initiative Foundations and Neighborhood Development Center)
$10,000-$50,000
Rolling (multiple rounds)Statewide grant program created by the Minnesota Legislature in 2023, distributing over $86 million to small businesses in underserved communities that did not receive pandemic-era state grants. Businesses must have gross annual revenue of $750,000 or less and be located in eligible communities.
Status check, Round 2 is open with rolling applications until funds are exhausted, per the official MN PROMISE site. No single statewide deadline exists; availability varies by partner organization. Some partners like Southwest Initiative Foundation may be temporarily closed.
Last verified, Jul 29, 2026
Job Creation Fund
Minnesota DEED
Up to $1,000,000
RollingProvides financial incentives to new and expanding businesses that meet job creation and capital investment targets. Companies can receive awards for creating or retaining high-paying jobs and for facility construction or renovation.
Status check, The Minnesota Job Creation Fund is active with a rolling deadline and no fixed close date. DEED application materials and multiple partner sites state applications are accepted year-round as funds are available. No pauses or closures reported.
Apply / Learn MoreLast verified, Aug 2, 2026
Automation Training Incentive Program
Minnesota DEED, Minnesota Jobs Skills Partnership
Up to $35,000
Rolling (first-come, first-served)Provides training grants to small businesses implementing new automation technology. Funds cover employee training costs related to the adoption of automation systems and equipment.
Status check, The program is currently open and accepting applications on a rolling, first-come, first-served basis with no fixed closing date, contingent on available funding. Official DEED page and program guide both describe it as active with no indication of pause or closure.
Apply / Learn MoreLast verified, Jul 27, 2026
Minnesota STEP Grant Program
Minnesota DEED
$500-$7,500
RollingReimburses small businesses up to $500 for export-related training and up to $7,500 for approved export development activities such as trade missions, foreign-language website development, and product certification for international markets.
Status check, The current program year ended June 30, 2026 with approximately $300,000 available. No new program year or RFP has been announced.
Apply / Learn MoreLast verified, Jul 27, 2026
Small Business Assistance Partnership Program
Minnesota DEED
Varies (over $12.5M total awarded)
RollingAwards grant funding to nonprofit organizations, higher education institutions, and community development organizations that deliver free or low-cost business development services to small businesses. Nearly three-quarters of grantees focus on supporting BIPOC business owners.
Status check, The program is active and ongoing as a partnership network delivering no-cost assistance to small businesses through funded nonprofits. No current application deadline is publicly posted. No indication of pause or discontinuation.
Last verified, Aug 2, 2026
Launch Minnesota Innovation Grants
Minnesota DEED, Office of Small Business and Innovation
Up to $35,000
Closed, funding ended at the close of FY25This program is not currently funded. Minnesota DEED reports in its FY25 Launch Minnesota annual report that funding was discontinued at the close of FY25 and the program no longer offers Innovation Grants. The old application page now lists past awardees only. DEED says it has not set a transition date and is still deciding the program's future, so treat this as closed unless the state announces otherwise.
Status check, The official page is currently an awardees page with no open solicitation visible. FY2025 funding was noted starting July 1, 2024 but no 2026 cycle confirmation exists. Program is neither confirmed open nor formally discontinued.
Last verified, Jul 27, 2026
Launch Minnesota SBIR/STTR Matching Grant
Minnesota DEED, Launch Minnesota
Up to $35,000 (Phase I) or $50,000 (Phase II)
Closed, funding ended at the close of FY25This program is not currently funded. It matched federal SBIR and STTR awards for Minnesota companies, up to $35,000 at Phase I and $50,000 at Phase II, and paid out $2.3 million across 78 awards between FY20 and FY25. Minnesota DEED reports funding was discontinued at the close of FY25 and has not set a transition date. If you hold a federal SBIR or STTR award, check DEED's own SBIR and STTR page for what replaced it.
Status check, The program concluded with the 2023-2025 biennium ending June 30, 2025. The official page now lists only past awardees using retrospective language. No new application round, deadline, or legislative reauthorization for FY2026 has been announced.
Last verified, Jul 27, 2026
MnDOT Micro Grant Program
Minnesota Department of Transportation
Up to $3,500
RollingHelps Minnesota-based certified small businesses (DBE, TGB, ED, or Vet-owned) increase capacity by reimbursing eligible business expenses. Applicants must have bid on a MnDOT project in the last two state fiscal years.
Status check, The page explicitly states The Micro Grant program is no longer accepting applications at this time. Directs interested parties to subscribe for updates on future grant opportunities.
Last verified, Aug 4, 2026
Federal Grant Programs
These federal programs are available to small businesses in every state.
SBA 7(a) Loan Program
The SBA's primary lending program guarantees loans through participating lenders. This is a loan, not a grant. But the terms favor small businesses that may not qualify for conventional financing.
Status check, This is a loan program, not a grant. The 7(a) Loan Program provides loan guarantees to lenders for small business loans up to $5 million. Applications are accepted on an ongoing basis through participating SBA lenders.
Learn moreLast verified, Aug 3, 2026
SBA Microloan Program
Loans up to $50,000, not grants. You borrow from a nonprofit lender near you, not from the SBA itself. The money can cover working capital, inventory, supplies or equipment. Most people get far less than the cap. The average microloan is about $13,000.
Status check, Verified July 30, 2026 at sba.gov. Rates run 8 to 13 percent. The longest term allowed is seven years. Your lender sets both, not the SBA, so two owners can be quoted very different deals. There is no deadline. You apply through an SBA approved lender in your area.
Learn moreLast verified, Jul 30, 2026
SBIR/STTR Grants
Competitive federal grants for small businesses doing research and development with commercial potential. Eleven federal agencies take part. Phase I funds proof of concept. Phase II funds full development.
Status check, Verified July 30, 2026 at sbir.gov. Two different figures get quoted for this program and both are real. As of April 2026 an agency may award up to $323,090 at Phase I and up to $2,153,927 at Phase II without SBA approval, and anything above that needs a waiver. Those are ceilings, not typical awards. Each agency sets its own amounts in its own solicitation, and the sbir.gov agency table currently runs from $50,000 to $300,000 at Phase I and $400,000 to $1.83 million at Phase II. There is no single deadline. You apply through a participating agency.
Learn moreLast verified, Jul 30, 2026
Minority Business Development Agency (MBDA) Programs
Help for minority owned businesses that need capital, contracts or new markets. MBDA runs business centers around the country. They give advice, help with bids, and point you toward lenders.
Status check, The business centers still run. The grants are a different story. Those windows are short, and they fund groups rather than single businesses. The last one we could find closed in February 2025. We found no open MBDA grant that a small business can apply for today.
View program pageLast verified, Jul 29, 2026
Get Grant-Ready
Before you apply, most Minnesota grant programs expect these basics to be in place.
Form your business entity
Most Minnesota grant programs require applicants to be a registered LLC, corporation, or nonprofit. If you haven't formed yet, that's the first step.
$39 + state fee. Includes registered agent, business address, and more.
Get your EIN
An Employer Identification Number is free from the IRS and required on nearly every grant application. You can apply online and receive it immediately.
Open a business bank account
Grant funds need to go into a dedicated business account, not your personal checking. Most agencies will ask for your banking details on the application.
Mercury is a fintech company, not an FDIC-insured bank. Banking services provided through Choice Financial Group and Column N.A., Members FDIC.
Grants by Business Type
Targeted programs for specific business owners in Minnesota.
Women-owned Business Grants
Women entrepreneurs in Minnesota receive increased consideration for Launch Minnesota Innovation Grants. WomenVenture and the Minnesota SBDC also provide dedicated consulting and capital access for women-owned businesses.
- ›Launch Minnesota Innovation Grants
- ›WomenVenture
- ›Minnesota SBDC
Minority-owned Business Grants
Nearly three-quarters of Small Business Assistance Partnership grantees focus on serving BIPOC entrepreneurs. The Metropolitan Economic Development Association (MEDA) provides business consulting and capital access specifically for minority entrepreneurs in the Twin Cities.
- ›Small Business Assistance Partnership Program
- ›Metropolitan Economic Development Association (MEDA)
- ›PROMISE Act Grants
Veteran-owned Business Grants
Veteran-owned businesses receive increased consideration for Launch Minnesota Innovation Grants. The MnDOT Micro Grant Program also specifically includes veteran-owned certified firms.
- ›Launch Minnesota Innovation Grants
- ›MnDOT Micro Grant Program
Rural Business Grants
Businesses in Greater Minnesota communities under 20,000 population are prioritized for PROMISE Act Grants. The Minnesota Jobs Skills Partnership offers up to $200,000 in training grants to businesses expanding in Greater Minnesota.
- ›PROMISE Act Grants
- ›Minnesota Jobs Skills Partnership
Technology/Innovation Business Grants
Tech startups can access up to $35,000 through Launch Minnesota Innovation Grants, plus state matching grants for federal SBIR/STTR awards. MNSBIR, Inc. helps Minnesota startups access federal R&D funding through the SBIR/STTR programs.
- ›Launch Minnesota Innovation Grants
- ›Launch Minnesota SBIR/STTR Matching Grant
- ›MNSBIR, Inc.
Tips for Applying in Minnesota
Increase your chances of approval with these state-specific tips.
- 1Register on DEED's Grants Management System portal before applying for any state-administered grant program.
- 2Ensure your business is in good standing with the Minnesota Secretary of State and the Minnesota Department of Revenue, as both are checked during the eligibility review.
- 3For PROMISE Act Grants, have your most recently filed tax return ready showing gross annual revenue of $750,000 or less. Applications typically take 30 to 60 minutes to complete.
- 4For Launch Minnesota Innovation Grants, note the 2:1 reimbursement model. You spend $2 and receive $1 back, so plan your budget accordingly. Application cycles open biannually.
- 5Contact your regional Minnesota SBDC office (headquartered at 180 E 5th St, Suite 1200, St. Paul) for free business consulting and help identifying the best grant programs for your business.
State Economic Development Agency
Minnesota Department of Employment and Economic Development (DEED)
DEED connects Minnesota small businesses to grants, loans, technical assistance, export support, and workforce training resources through its Office of Small Business and Innovation.
Funding While You Wait
Grant applications in Minnesota can take weeks or months to process. These options can bridge the gap.
Frequently Asked Questions
Yes. Minnesota offers several true grants that do not require repayment. The PROMISE Act Grant program provides $10,000 to $50,000 to eligible small businesses in underserved communities across the state. Launch Minnesota Innovation Grants offer up to $35,000 on a reimbursement basis for technology startups. The Job Creation Fund also provides non-repayable incentive awards of up to $1 million to businesses meeting job creation targets.
The PROMISE Act Grant is currently one of the most widely available programs, with over $86 million being distributed statewide through six Minnesota Initiative Foundations and the Neighborhood Development Center. For tech startups, the Launch Minnesota Innovation Grant is the most popular program, having awarded $9.5 million since 2019 across hundreds of innovative companies. Both programs are administered through the Minnesota Department of Employment and Economic Development (DEED).
Most Minnesota grant programs do not require minority or women-owned certification to apply. However, certification can give you an advantage. Launch Minnesota Innovation Grants provide increased consideration to businesses owned by women, veterans, and entrepreneurs of color. The MnDOT Micro Grant Program does require DBE or TGB/ED/Vet-owned certification. Contact DEED's Office of Small Business and Innovation or your local SBDC for help with the certification process.
Timelines vary by program. Launch Minnesota Innovation Grants operate on biannual cycles, with applicants typically notified within two months of the application deadline. PROMISE Act Grants are awarded in competitive rounds, with applications reviewed and scored after the window closes. For first-come, first-served programs like the Automation Training Incentive, funds may be distributed more quickly but can be exhausted before the program year ends. Plan for a 60 to 120 day timeline from application to award for most state programs.
About the Author
Senior Finance & Banking Editor
Richard is the veteran anchor of the site's financial content. Raised in the Midwest and starting his career in Chicago's commercial banking sector, he spent over a decade underwriting small business loans before moving into financial journalism. He doesn't get swept up in startup hype; he cares about unit economics, APYs, and fee structures.
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Grant programs change frequently. Deadlines, eligibility requirements, and funding amounts listed here may be outdated. Always verify information directly with the granting agency before applying. This page is for informational purposes only and does not constitute financial or legal advice.
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