The Minnesota Inclusive Growth Fund (MIGF) offers affordable financing solutions and complimentary business assistance to empower entrepreneurs like you.
Serving for profit Minnesota-based small businesses that have been in business for at least 1 year
Affordable financing for working capital, utilities, equipment, refinancing existing debt
Supporting businesses across industries, including restaurants, retail, child care, and beauty. Home-based businesses are eligible to apply.
Loan Amount | Maximum loan size not to exceed $350,000 |
Eligible Businesses | For-profit small businesses |
Interest Rate | 5% fixed interest |
Collateral | No specific collateral, beyond a UCC-1 financing statement, is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment) for loans under $125,000. Personal guarantees will be required for individuals that own 20% or more of applying businesses. Additionally, all loan requests for capital expenditure or above $125,000 will be secure with a lien against specific business assets. |
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, refinancing of existing debt (including a refinancing high-cost debt or debt with burdensome terms), and capital expenditures, as defined as equipment, furniture, vehicles, fixtures, excluding real estate. |
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 loans for small businesses seeking a loan for capital expenditures, defined as equipment, furniture, vehicles, fixtures, excluding real estate.
Loan Amount | Maximum loan size not to exceed $350,000 |
Eligible Businesses | For-profit small businesses |
Interest Rate | 5% fixed interest |
Collateral | No specific collateral, beyond a UCC-1 financing statement, is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment) for loans under $125,000. Personal guarantees will be required for individuals that own 20% or more of applying businesses. Additionally, all loan requests for capital expenditure or above $125,000 will be secure with a lien against specific business assets. |
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, refinancing of existing debt (including a refinancing high-cost debt or debt with burdensome terms), and capital expenditures, as defined as equipment, furniture, vehicles, fixtures, excluding real estate. |
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. |
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 50 or fewer full-time equivalent (FTE) employees or have less than $5 million.
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:
Yes. Fees will only be assessed to loans that are funded. There are different fee structures for each of the available loan products.
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, 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 50 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.