The Minnesota Inclusive Growth Fund (MIGF) provides flexible, affordable capital and business support services to businesses across the state helping them to rebuild and grow.
MIGF is a program created by the Catalyst Coalition— a group of five local mission-driven lenders.
The Minnesota Inclusive Growth Fund (MIGF) increases access to flexible and affordable capital and support services for small businesses across the State of Minnesota, with an emphasis on long-term recovery, growth, and businesses in low-to-moderate income or underbanked communities.
The Fund offers two types of loans for small businesses, one for businesses seeking working capital and another for growth-stage businesses seeking a loan for capital expenditures.
MIGF is designed to equip community small businesses and mission-driven small business lenders with the support required to meet the unique rebuilding and recovery needs of the communities they serve. The Fund’s goals are near-term survival and long-term success for small businesses that create community wealth, quality jobs and positive impact.
For-profit small businesses in Minnesota are eligible for MIGF small business loans and growth loans.
To be eligible, small businesses must employ 20 or fewer full-time equivalent (FTE) employees or have less than $3 million in revenue in 2019.
The business must have suffered a direct economic disruption as a result of COVID-19 or the civil unrest in a way that has materially impacted operations, with an emphasis given to businesses located in low/moderate-income areas and under-served communities served by the participating mission-driven lenders.
The business has been in operation since at least September 2019, unless the business is a for-profit business and meets one of the following additional criteria:
| Loan Amount | Lesser of (a) $100,000 or (b) 3x average monthly revenue prior to the COVID-19 outbreak |
| Eligible Businesses | For-profit small businesses |
| Interest Rate | 5% fixed interest |
| Collateral | No specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment). Please note that this program requires a blanket first or second lien on business assets to be filed by the community lender and any owners with more than 20% ownership must sign a personal guarantee. |
| Repayment term | 60-month term: • 0-12 months: monthly, interest only payments • 13 to 60 months: monthly interest and principal payments, amortized over 48-months |
| Use of proceeds | Working capital, including payroll, operating and emergency maintenance, utilities, rent, supplies, etc. |
| Fees | • Origination Fee – up to 3.5% of loan amount • Application Fee – determined by pre-application assistance; not to exceed $250 |
| Prepayment | The borrower may prepay the loan, in whole or in part, at any time without penalty. |
| Loan Amount | $100,000 to $200,000 |
| Eligible Businesses | For-profit small businesses |
| Interest Rate | 5% fixed interest |
| Collateral | Collateral required |
| Repayment term | 60-month term: • 0-12 months: monthly, interest only payments • 13 to 60 months: monthly interest and principal payments, amortized over 48-months |
| Use of proceeds | Capital expenditures, equipment, & working capital |
| Fees | • Origination Fee – up to 3.5% of loan amount • Application Fee – determined by pre-application assistance; not to exceed $500 |
| Prepayment | The borrower may prepay the loan, in whole or in part, at any time without penalty. |
All loans are subject to credit approval and meeting eligibility criteria.
MIGF was created by the Catalyst Coalition, a group of five leading Minnesota-based minority business support organizations (MSBOs), including Metropolitan Economic Development Association (MEDA), Northside Economic Opportunity Network (NEON), Latino Economic Development Center (LEDC), African Economic Development Solutions (AEDS), and Community Reinvestment Fund, USA (CRF).
The collective mission for the Catalyst Coalition is increasing the quantity and quality of stage-appropriate supports for minority businesses in Minnesota. In 2020, the collaboration has helped serve more than 5,000 total clients and provided 21,000 hours of business advisory services during the pandemic and last summer’s unrest in Minneapolis.
The partners are only accepting applications for MIGF through this website, but you may contact them individually if you have questions about your business or eligibility
The Catalyst Coalition is a consortium of five leading Minnesota-based business support organizations that support BIPOC entrepreneurs and their businesses. The goal of the Catalyst Coalition is to increase the quantity and quality of stage-appropriate supports for minority businesses in Minnesota. This collaboration has served more than 5,000 total clients during the pandemic and last summer’s unrest in Minneapolis.
The Fund offers two types of loans for small businesses, one for businesses seeking working capital and another for growth-stage businesses seeking a loan for capital expenditures, including building acquisition and equipment.
| Product | Small Business Loan | Growth Loan |
|---|---|---|
| Term | 60 Months- 12 Months interest only | 60 Months- 12 Months interest only |
| Amount | Loans available for 3x average monthly revenues before COVID (2019-March 2020) up to $100,000 | Loans available based on business need from $100,000- $200,000 |
| Rate | 5% Interest | 5% Interest |
| Uses | Flexible working capital expenses including payroll, rent, utilities, inventory, COVID-mandated improvements, and other business needs. | Must be used for capital expenditures such as building acquisition, machine purchase, large capital expenditures. |
| Fees | • Origination Fee – up to 3.5% of loan amount • Application Fee – determined by pre-application assistance; not to exceed $250 | • Origination Fee – up to 3.5% of loan amount • Application Fee – determined by pre-application assistance; not to exceed $500 |
| Security | No specific collateral needed- however a UCC filing will be taken at CDFI discretion against business assets | Collateral will be required |
The Minnesota Inclusive Growth Fund aims to raise more than $50 million to provide affordable capital and business support to small businesses and growth-stage businesses in the State of Minnesota.
Maximum loan amounts for recovery loans to small businesses are $100,000 or up to 100% of business revenues in any 3-month period from 2019 or Q1 of 2020 (pre-covid) whichever is less and loans of up to $200,000 will be available for growth-stage businesses to be used for building acquisition, large investments, or capital equipment purchases.
Yes, MIGF is focused on supporting small businesses located in the State of Minnesota.
The fund is aimed at helping small businesses in Minnesota.
To qualify, small businesses must employ 20 or fewer full-time equivalent (FTE) employees or have less than $3 million in revenue in 2019.
The business must have suffered a direct economic disruption as a result of COVID-19 or the recent civil unrest in a way that has materially impacted operations, with an emphasis given to businesses located in low/moderate income areas and under-served communities served by the participating CDFIs.
The business has been in operation since at least September 2019, unless the business is a for-profit business and meets one of the following additional criteria:
As part of your full loan application, you will need to provide the following documentation to the community lender:
A participating community lender will reach out to you to collect the required documentation, conduct any credit checks, and finalize the application review process.
Please note: additional documentation may be required by the community lender at or after the time of the application to approve or underwrite your loan.
All applicants are assessed on a case-by-case basis, with a target of getting the loans to small businesses as quickly as possible from when a loan application is submitted to a CDFI to closing (depending on how quickly the lender receives a full completed application and relevant documents).
To facilitate a timely processing of your loan application, please prepare the required information and documentation in advance and make sure that all information and documentation are complete and accurate.
The current fixed annual interest rate for loans issued under the program are:
There is no minimum credit score that is required under this program, but please note that each community lender may set its own credit score limits for the loan applications it reviews.
Businesses engaged in certain activities are not eligible (please see question below “What types of businesses are not eligible for a loan?”).
Due to a limited amount of funding availability and the high volume of applicants expected, it is anticipated that not all eligible applicants will be able to receive a loan.
Applications will be reviewed on a rolling basis and will be managed taking into consideration the program’s goals.
The time it takes to process an application will depend on the volume of applications received by the matched community lender.
Please note that submitting an application is not an indication of eligibility and does not guarantee that a loan will be approved or funded. We recommend applying as soon as possible.
Proceeds can be used for capital expenditures, building acquisition, equipment, working capital, payroll, operating and emergency maintenance, utilities, rent, supplies, etc..
You will be required to detail the proposed use of loan proceeds when you apply to the community lender.
Businesses that are NOT eligible include, but are not limited to:
Yes. If each business is a separate legal entity, has a separate tax ID and all business combined employ 20 or fewer full-time equivalent (FTE) employees, then you can apply for each of the businesses. However, each business must meet all eligibility requirements.
NO, THIS IS NOT A FORGIVABLE LOAN. Please note, this program is not associated with the federal Paycheck Protection Program (PPP) or any other SBA program. The borrower will need to pay back the full amount of the loan with interest over a 60 month (five year) term.
If you do not make a loan payment on time, you may be assessed a late fee by the participating lender per its applicable policies. A failure to pay may also result in the loan being declared in default and the lender’s exercise of its default remedies under the loan documents. Please review the full terms of your loan agreement for additional details.
African immigrant Falmata Bedasso is the Founder and CEO of Frontier Transportation Services LLC (FTS) based in Minnesota’s Twin Cities, a student transportation company that serves more than 200 students a day as a contractor for local school districts, including some of the metro’s largest.
