Small Business Grants in Minnesota
Minnesota killed its two startup grants. Launch Minnesota Innovation and the Launch Minnesota SBIR match both ended with their funding on 30 June 2025, and neither came back.
Minnesota killed its two startup grants. Launch Minnesota Innovation and the Launch Minnesota SBIR match both ended with their funding on 30 June 2025, and neither came back. What is left pays for narrower things, exporting, automation training, jobs you have already made. Some of the cards below are advice or a loan. Each one names its type and its status.
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)
Up to $10,000, $25,000 or $50,000 by revenue band
Varies by partner organisationA statewide programme the Minnesota Legislature created in 2023 for small businesses in underserved communities that missed the pandemic era state grants. Your award is set by last year's gross revenue, up to $10,000 on $100,000 or less, up to $25,000 between $100,000 and $350,000, and up to $50,000 between $350,000 and $750,000. Revenue above $750,000 makes you ineligible. Funds cover working capital, payroll, rent or mortgage, utilities and equipment. You never apply to DEED. You apply to one of its partner organisations, and each partner sets its own window, so check the partner rather than the state page.
Job Creation Fund
Minnesota DEED
Up to $1 million, and up to $2 million in some cases
RollingMoney for businesses that are expanding and hiring, not a small business grant in the usual sense. You must invest at least $500,000 in property improvements, or $250,000 in Greater Minnesota or if minorities, veterans, women or people with a disability own most of the business. You must also create at least 10 new permanent full-time jobs, or 5 for those same groups, and get a supporting resolution from your city, county or township. Awards reach $1 million, and $2 million in some cases. Work that starts before DEED designates you does not count.
Apply / Learn MoreAutomation Training Incentive Program
Minnesota DEED, Minnesota Jobs Skills Partnership
Up to $35,000
No published deadlineTraining grants for small manufacturers and skilled production businesses bringing in new automation. It covers the cost of training existing staff on the new systems. The geography is the catch. You have to be outside the seven county Minneapolis and Saint Paul metropolitan area, or in one of five named exception cities, Cannon Falls, Hanover, Rockford, Northfield or New Prague. The jobs being trained must be existing full-time roles paying at least 120 percent of the federal poverty guideline for a family of four, which DEED puts at $39,600 a year for 2026.
Apply / Learn MoreMinnesota STEP Grant Program
Minnesota DEED
Up to $500 for export training, up to $7,500 for export development, capped at 50 percent of qualified expenses
Rolling, apply at least two months before the activityReimburses 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.
Apply / Learn MoreSmall 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.
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.
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.
MnDOT Micro Grant Program
Minnesota Department of Transportation
Up to $3,500
Closed, no new applicationsHelps 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.
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.
Learn moreSBA 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.
Learn moreSBIR/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.
Learn moreMinority 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.
Learn moreGet 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
No state grant here is women only. PROMISE Act partners do serve women-owned firms, so that is the route in. WomenVenture and the Minnesota SBDC give free advice.
- ›PROMISE Act Grants
- ›WomenVenture
- ›Minnesota SBDC
Minority-owned Business Grants
Most Small Business Assistance Partnership grantees work with BIPOC owners. In the Twin Cities, MEDA advises minority owners and helps them raise money.
- ›Small Business Assistance Partnership Program
- ›Metropolitan Economic Development Association (MEDA)
- ›PROMISE Act Grants
Veteran-owned Business Grants
No state grant here is veteran only. The two that gave veterans extra weight have both stopped. Veterans are served by the Partnership network and the SBDC.
- ›Small Business Assistance Partnership Program
- ›Minnesota SBDC
Rural Business Grants
Greater Minnesota towns under 20,000 people come first for PROMISE Act money. The Jobs Skills Partnership pays up to $200,000 to train staff at firms growing there.
- ›PROMISE Act Grants
- ›Minnesota Jobs Skills Partnership
Technology/Innovation Business Grants
Both startup grants are gone. Launch Minnesota and its SBIR match ended when the money ran out on 30 June 2025. Neither came back. MNSBIR still helps startups win federal research money.
- ›MNSBIR, Inc.
- ›Automation Training Incentive Program
Tips for Applying in Minnesota
Increase your chances of approval with these state-specific tips.
- 1Register on DEED's Grants Management System portal before you apply for any state grant.
- 2Check that you are in good standing with the Secretary of State and the Department of Revenue. Both are checked during the review.
- 3For a PROMISE Act grant, have last year's tax return to hand showing $750,000 or less. The form takes 30 to 60 minutes.
- 4You do not apply to DEED for a PROMISE Act grant. Find the partner that covers your county first. Each one runs its own rounds, and the help they give is free.
- 5Book free advice at your regional Minnesota SBDC office. They will help you pick the right programme.
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.
Grants in Other States
All state grant guidesFrequently Asked Questions
Yes. The PROMISE Act Grant pays $10,000 to $50,000 to small businesses in underserved communities, set by your revenue. The Minnesota STEP grant repays exporters up to $500 for training and up to $7,500 for export development. The Job Creation Fund reaches $1 million and never has to be repaid, but it is for expansion projects that invest at least $500,000 and add at least 10 jobs.
The PROMISE Act Grant. DEED is awarding $94.3 million through it in several rounds, run by six Minnesota Initiative Foundations and the Neighborhood Development Center, and you apply to the partner that covers your county. There is no equivalent for tech startups any more. Launch Minnesota awarded $9.5 million from 2019, but its funding ended on 30 June 2025 and the state has not brought it back.
No. None of the open Minnesota programmes asks for it. The two that did weigh it, Launch Minnesota and the MnDOT Micro Grant, have both stopped taking applications. Certification still opens state contracts, so it is worth holding. Your PROMISE Act partner can tell you whether it counts in their round, and the SBDC will help you apply for it.
It depends on the programme. PROMISE Act partners award in rounds, so your application is scored once the window shuts. Minnesota STEP wants travel applications two months ahead and reviews them as they arrive. The Automation Training grant has no closing date, but the money can run out before the year does. Plan on 60 to 120 days from applying to being paid.
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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