Governor Mark Dayton and Lt. Governor Tina Smith Announce Lender Partners for New Emerging Entrepreneur Loan Program

Press Release

Governor Mark Dayton and Lt. Governor Tina Smith today announced that the Minnesota Department of Employment and Economic Development (DEED) has selected 23 nonprofit organizations to participate in a new statewide lending program designed to provide funding to businesses that may experience difficulty accessing capital.

"With this funding, more Minnesotans will have the opportunity to grow businesses across our state, supporting good jobs and strong local economies," said Governor Mark Dayton. "We must continue working to expand economic opportunities for communities of color, women, veterans, and people with disabilities across our state, to build a better Minnesota for everyone."

The new statewide program aims to help increase economic opportunities for businesses owned by minorities, women, veterans, low-income individuals, and/or persons with disabilities. It replaces the Urban Initiative program, which served low-income communities in the Twin Cities metropolitan area.

"These loans will help Minnesotans from communities that have historically struggled to access capital get the resources they need to start or grow businesses," said Lt. Governor Tina Smith. "Expanding economic opportunities for communities of color, women, veterans, and people with disabilities is essential to building an economy that works for everyone, everywhere in Minnesota. I am pleased the State is partnering with these 23 leading non-profit organizations to connect these resources to Minnesota's emerging entrepreneurs."

As part of the new Minnesota Emerging Entrepreneur Loan Program, DEED will award a combined total of $2 million to these organizations, which serve communities throughout Minnesota. These organizations will, in turn, make loans ranging from $5,000 to $150,000 to small businesses across the state. All loans will be approved by DEED, and repayment of funds will go into a revolving loan fund.

During the 2016 Legislative Session, Governor Dayton and Lt. Governor Smith advocated for a $100 million investment in high-impact strategies to eliminate economic and racial disparities through education, training, work experience, housing, business development, and community development. The Minnesota Legislature eventually approved $35 million for these initiatives, which was signed into law by the Governor last June.

"DEED is excited to work with lenders, many of whom are new to DEED programs and who will help engage all of our Minnesota communities more effectively," said DEED Commissioner Shawntera Hardy. "We look forward to ensuring that these loans are meeting the needs of the businesses and helping to level the playing field in the marketplace."

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