Minnesota Forward Fund – State Matching Grant for Projects and Businesses

Grant Overview

Secure Up to $15 Million in Minnesota State Funding for Business Expansion and Federal Matching Projects

Donor: Minnesota Department of Employment and Economic Development (DEED)

About: The Minnesota Forward Fund represents a significant $400 million state investment designed to fuel business growth, catalyze innovation, and strengthen Minnesota’s economic competitiveness. This transformative program serves two critical purposes: providing matching funds for federal programs requiring state participation and supporting major capital investments in both emerging and established industries across Minnesota.

The program strategically allocates its $400 million appropriation across three key sectors. First, $50 million is dedicated to businesses requiring matching funds for federal programs. Second, $100 million targets bio-industrial manufacturing and aerospace initiatives through the Consolidated Appropriations Act. Finally, $250 million supports semiconductor industry projects under the CHIPS and Science Act, with individual projects eligible for up to 15% of total costs (capped at $75 million per project).

What sets the Minnesota Forward Fund apart is its comprehensive approach to economic development. Unlike traditional government grants, this program addresses multiple business needs including machinery purchases, building construction, infrastructure development, and even working capital. This holistic support enables businesses to undertake transformative expansion projects that would otherwise remain financially unfeasible.

For businesses, the Minnesota Forward Fund offers remarkable flexibility with a substantial funding ceiling. Individual business expansion projects can receive up to $15 million in combined grants and loans, with a maximum of $10 million available as grants. This generous ceiling enables companies to undertake significant capital investments with reduced financial burden.

The application process has been streamlined for accessibility. Businesses can apply year-round through one of three specialized application tracks: general business expansion, bio-industrial/aerospace projects, or semiconductor initiatives. All applications require a resolution of support from the local government where the project will be located, ensuring community alignment.

Higher education institutions can also access this funding through a specialized track offering up to $5 million per institution. These grants support developing specialized workforce training programs and building research capacity specifically for semiconductor industries, creating a robust talent pipeline for supported businesses.

At Grantaura, we understand the complexity of securing government funding. Our team of grant specialists can significantly enhance your chances of success with the Minnesota Forward Fund by developing tailored application strategies, creating compelling project narratives, and managing the entire application process on your behalf. Contact us today to maximize your potential for receiving this transformative funding opportunity.

Focus: Business expansion, Job creation, Federal fund matching, Semiconductor industry, Bio-industrial manufacturing, Aerospace research, Economic development, Infrastructure improvements, Manufacturing growth, Technology advancement

Region: Minnesota, United States

Eligibility:
-Businesses planning expansion projects in Minnesota
-Companies receiving federal funding requiring state matching dollars
-Bio-industrial manufacturing facilities utilizing agricultural feedstocks
-Biorefinery developers or operators
-Commercial campus developers focusing on agricultural feedstocks
-Minnesota aerospace centers for research, development and testing
-Semiconductor manufacturing companies
-Institutions of higher education (for workforce development and R&D components)
–Must partner with a business benefiting from the Minnesota Forward Fund
–Must provide 1:1 non-state matching funds
–Must be supported by a business benefiting from the proposal

Benefits:
-Up to $15 million in combined grants and loans per business expansion project
-Maximum $10 million in grant funding per business
-Up to 15% of total project costs (maximum $75 million) for CHIPS Act projects
-Up to $5 million for higher education institutions supporting workforce development
-Support for machinery and equipment purchases
-Funding for building construction and remodeling
-Resources for land development and infrastructure
-Access to working capital
-Enhanced local tax base
-Ten-year maximum grant/loan agreement duration

Deadline: Rolling applications accepted year-round

Terms:
-CHIPS Act: The Creating Helpful Incentives to Produce Semiconductors Act (CHIPS Act), part of Public Law 117-167, provides federal incentives to strengthen domestic semiconductor manufacturing, design, and research
-Consolidated Appropriations Act: Public Law 117-328 that allocated federal funding for various projects requiring state matching funds
-Business Subsidy Agreement (BSA): A formal agreement between DEED and the business specifying award details including job creation goals and capital investment requirements
-Full-time equivalent (FTE): A position based on 2,080 hours that must be non-contract, non-seasonal, and permanent to qualify for job creation metrics
-Prevailing wage: For awards exceeding $200,000, laborers and mechanics at the project site must be paid according to Minnesota Prevailing Wage Act requirements
-Minnesota Forward Fund for Institutions of Higher Learning: A specialized track providing grants to higher education institutions developing workforce training programs for semiconductor industries
-Job Listing Agreement: For awards exceeding $200,000, recipients must work with DEED’s Employment and Training staff to list vacant positions on www.minnesotaworks.net