Minnesota Job Creation Fund for Business Expansion and Job Creation

Grant Overview

Access Up to $2 Million in Capital Investment Rebates and Job Creation Awards for Minnesota Business Growth

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

About: The Minnesota Job Creation Fund is a performance-based business incentive program designed to fuel economic growth through strategic investments in expanding businesses. This financial assistance program provides support to companies undertaking facility expansions and adding new jobs in Minnesota, positioning it as a powerful resource for businesses seeking capital for growth.

The program operates on a reimbursement model, requiring businesses to first meet specific job creation and capital investment thresholds before receiving financial benefits. This performance-first approach ensures taxpayer dollars only flow to projects delivering tangible economic benefits to Minnesota communities.

For eligible businesses, the Job Creation Fund offers two primary benefits: job creation awards and capital investment rebates. The job creation component provides annual cash awards ranging from $1,000 to $5,000 per new job depending on wage levels and business location. Meanwhile, the capital investment rebate returns 5% to 7.5% of qualifying facility improvement costs, making substantial construction or renovation projects more financially feasible.

What sets the Minnesota Job Creation Fund apart is its tailored approach for different business demographics. The program provides enhanced benefits for targeted populations, including businesses located in Greater Minnesota and those owned by minorities, veterans, women, or persons with disabilities. These businesses face lower eligibility thresholds and can access higher rebate percentages, reflecting Minnesota’s commitment to inclusive economic development.

Applications are accepted year-round, giving businesses flexibility to align the program with their expansion timelines. The streamlined four-step application process requires working through your local government, with DEED providing ongoing guidance throughout the application and reporting process.

Since its inception, the Job Creation Fund has helped numerous Minnesota businesses expand their facilities and workforce, as evidenced by the interactive funding awards map showing successful projects throughout the state. The program has been recognized for its innovation by the Economic Development Association of Minnesota, highlighting its effectiveness in strengthening the state’s economy.

Navigating grant applications can be complex, especially for growing businesses focused on operations. Grantaura’s specialized team can help you develop a compelling Job Creation Fund application, including creating essential documentation like business plans, financial projections, project plans, and formal applications. Our grant experts understand Minnesota’s economic development landscape and can guide you through every step of the process to maximize your potential funding.

Focus: Manufacturing, Warehousing, Distribution, Technology, Business Expansion, Job Creation, Capital Investment, Facility Improvement, Economic Development

Region: Minnesota, United States

Eligibility:
-Business must be engaged in an eligible activity: manufacturing, warehousing, distribution, technology-related industries (retail, healthcare, hospitality, and community service businesses are not eligible)
-Must obtain local government support via council resolution
-Business must invest at least $500,000 in real property improvements within one year of designation ($250,000 for Targeted Populations)
-Must create at least 10 new permanent full-time equivalent jobs within two years (5 jobs for Targeted Populations)
-Jobs must pay at least $16.50 per hour in wages and benefits (adjusted annually)
-Business must have location options outside Minnesota
-Project must not cause undue harm to Minnesota business competitors
-Business must certify the project would not occur without Job Creation Fund assistance
-Projects that begin prior to DEED designation are not eligible
-Must adhere to prevailing wage requirements if receiving $200,000 or more in assistance

Benefits:
-Job Creation Awards:
–$1,000 per year per job created paying at least $35,322 in cash wages ($2,000 for Targeted Populations)
–$2,000 per year per job created paying at least $47,542 in cash wages ($3,000 for Targeted Populations)
–$3,000 per year per job created paying at least $61,124 in cash wages ($4,000 for Targeted Populations)
–$4,000 per year per job created paying at least $74,707 in cash wages ($5,000 for Targeted Populations)
-Capital Investment Rebates:
–Up to 5% rebate for real property improvements for businesses in Twin Cities Metro
–Up to 7.5% rebate for real property improvements for businesses in Greater Minnesota
-Funding limit of $1 million for most projects ($500,000 for job creation and $500,000 for capital investment)
-Up to $2 million for larger projects ($1 million for job creation and $1 million for capital investment)

Deadline: Applications accepted year-round

Terms:
-Prevailing Wage: Minimum hourly wage employers must pay certain workers who work on construction projects where state dollars are used to fund the construction, including the employer’s cost of benefits
-Twin Cities metropolitan area: The eleven counties of Anoka, Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright
-Targeted Population: A business located in Greater Minnesota or if 51% of the business is cumulatively owned by minorities, veterans, women, or persons with a disability
-Real Property Improvements: Expenditures used for building or improving fixed property where employees will be located, including construction materials, services and supplies (land acquisition costs are not eligible)
-Full-time equivalent job: A permanent position requiring an employee to work an expected 2,080 hours annually
-Greater Minnesota: All areas outside the Twin Cities metropolitan area’s eleven counties
-Business Subsidy Agreement: Legal contract between the business and DEED specifying job retention, creation, wage, and capital investment requirements
-DEED: Minnesota Department of Employment and Economic Development, the state agency administering the program