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)
Varies by partner, $94.3 million awarded in total across multiple rounds
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. DEED puts the total at $94.3 million awarded across multiple rounds. 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
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.
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 staff on the new systems. The geography is the catch. You have to be outside the seven county metro, or in Cannon Falls, Hanover, Rockford, Northfield or New Prague. Wages must clear 120 percent of the federal poverty line for a family of four, which is $39,600 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
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.
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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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