Small Business Grants in Minnesota
Minnesota offers more than 15 active grant and incentive programs for small businesses, administered primarily through the Minnesota Department of Employment and Economic Development (DEED).
In This Article
Which Minnesota grants fit your business?
Answer 7 quick questions and we sort the 13 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 9, 2026
Launch Minnesota Innovation Grants
Minnesota DEED, Office of Small Business and Innovation
Up to $35,000
Rolling (biannual application cycles)Provides up to $35,000 on a 2:1 reimbursement basis to innovative, scalable technology startups for research, development, and business operations. Increased consideration is given to startups in Greater Minnesota and those owned by women, veterans, or entrepreneurs of color.
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 15, 2026
Launch Minnesota SBIR/STTR Matching Grant
Minnesota DEED, Launch Minnesota
Up to $35,000 (Phase I) or $50,000 (Phase II)
RollingProvides matching grant funding to first-time federal SBIR/STTR Phase I and Phase II awardees in Minnesota. Grant amounts are based on a sliding scale of the federal award.
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 9, 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, Jul 12, 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 9, 2026
Minnesota STEP Grant Program
Minnesota DEED
$500-$7,500
Deadline Jun 30, 2026Reimburses 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 9, 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, Jul 9, 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, Jul 9, 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, Jul 14, 2026
SBA Microloan Program
Provides small, short-term loans up to $50,000 through nonprofit intermediary lenders. Funds working capital, inventory, supplies, or equipment. Interest rates typically run 8% to 13%. Repayment terms reach up to six years.
Status check, The SBA Microloan Program provides loans up to $50,000 through intermediary lenders. No application deadline specified. Program appears to be ongoing and available through SBA-approved intermediaries.
Learn moreLast verified, Jul 14, 2026
SBIR/STTR Grants
Competitive federal grants for small businesses doing research and development with commercial potential. Twelve federal agencies take part. Phase I awards fund proof of concept. Phase II supports full development.
Status check, SBIR/STTR is an ongoing rolling program. Phase I awards $50,000-$275,000 over 6-12 months. Phase II awards $750,000-$1.8 million over 24 months. No single deadline shown; applicants apply through participating agencies.
Learn moreLast verified, Jul 15, 2026
USDA Rural Business Development Grant
Grants for rural small businesses and communities in areas under 50,000 people. Covers technical assistance, training, and business planning. Awarded to public bodies, tribes, and nonprofits.
Status check, The USDA RBDG program is currently listed as closed. The most recent cycle deadlines were June 15, 2026 for SECD applications and June 30, 2026 for remaining applications, both of which have passed.
Learn moreLast verified, Jul 14, 2026
Minority Business Development Agency (MBDA) Programs
Federal programs for minority-owned businesses seeking capital, contracts, or market access. MBDA Business Centers sit across the country. They offer consulting, procurement help, and financing referrals.
Status check, MBDA operates ongoing business center services but competitive grant windows are time-limited and targeted at organizations not individual businesses. The only identified grant (WEP) closed February 2025. No currently open general MBDA small business grant found.
Learn moreLast verified, Jul 15, 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
- ›USDA Rural Business Development Grant
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
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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