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.
The funding programmes below are administered mainly by the Minnesota Department of Employment and Economic Development (DEED). Some of it is not free money. The cards show the type and the current status. Programs range from innovation grants for tech startups to workforce training incentives and community recovery grants for underserved areas.
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, Open. Checked at DEED on 24 August 2026. The PROMISE Act programme is running and DEED now says a total of $94.3 million will be awarded in multiple rounds, up from the $86 million our page had been quoting. You do not apply to DEED. Six regional partner organisations run the rounds and the applications, and each publishes its own service area and contact, so find the partner covering your county first. Eligibility turns on gross annual revenue of $750,000 or less in the prior tax year, ongoing operations at the date of application, and a location inside an eligible service area.
Automated check, Aug 24, 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 MoreAutomated check, Aug 24, 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 MoreAutomated check, Aug 18, 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 MoreAutomated check, Aug 18, 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.
Automated check, Aug 24, 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, Closed. Checked at the Launch Minnesota grants URL on 24 August 2026. That page is now titled Launch Awardees, it lists past recipients only, and the site navigation no longer carries an application page for these grants at all. The funding ran with the 2023 to 2025 biennium and ended on 30 June 2025, and DEED has announced no reauthorisation. Our row had carried the scaffold default of unknown while its own deadline text said closed, so the page was featuring a finished programme.
Automated check, Aug 24, 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, Closed. Checked at the Launch Minnesota grants URL on 24 August 2026. That page is now titled Launch Awardees, it lists past recipients only, and the site navigation no longer carries an application page for these grants at all. The funding ran with the 2023 to 2025 biennium and ended on 30 June 2025, and DEED has announced no reauthorisation. Our row had carried the scaffold default of unknown while its own deadline text said closed, so the page was featuring a finished programme.
Automated check, Aug 24, 2026
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.
Status check, Closed. Checked at dot.state.mn.us on 24 August 2026. MnDOT says the Micro Grant program is no longer accepting applications at this time and points interested firms at its newsletter for future rounds. The $3,500 reimbursement cap and the certification rules are unchanged, so the programme has not been abolished, it is simply between rounds with nothing posted. Our row had carried a Rolling deadline label against an expired status.
Automated check, Aug 24, 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 moreAutomated check, Aug 25, 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 moreAutomated check, Aug 21, 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 moreAutomated check, Aug 21, 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 pageAutomated check, Aug 19, 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
Minnesota runs no women-only state grant today. PROMISE Act rounds are administered through regional partner organisations that serve women-owned businesses, and WomenVenture and the Minnesota SBDC provide dedicated consulting and capital access.
- ›PROMISE Act 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
Minnesota has no veteran-specific state grant open at the moment. The two programmes that used to give veteran-owned firms extra weight, Launch Minnesota Innovation Grants and the MnDOT Micro Grant, have both stopped taking applications. Veteran-owned businesses are served through the Small Business Assistance Partnership network and the Minnesota SBDC.
- ›Small Business Assistance Partnership Program
- ›Minnesota SBDC
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
Minnesota's two dedicated startup grants, Launch Minnesota Innovation Grants and the Launch Minnesota SBIR and STTR match, both ended when their funding ran out on 30 June 2025 and neither has been reauthorised. MNSBIR, Inc. still helps Minnesota startups reach federal research and development money through the SBIR and STTR programmes.
- ›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 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.
- 4PROMISE Act grants are not applied for at DEED. Find the partner organisation that covers your county first, since each one runs its own rounds and its own application, and the technical assistance they offer is free.
- 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.
Grants in Other States
All state grant guidesFrequently 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. The Minnesota STEP grant reimburses exporters up to $500 for export training and up to $7,500 for approved export development activity. 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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