Accessible,
low-interest financing for Minnesota-based small businesses
The Minnesota Inclusive Growth Fund (MIGF) offers affordable financing solutions and complimentary business assistance to empower entrepreneurs like you.
- 5% fixed interest rate
- Loans up to $350,000
- Simple application process
- Business support services
Supporting Minnesota Small Business Communities
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 communities.
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.
MIGF Loan Terms & Eligibility
| 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. Full eligibility guidelines will be provided during the application process.
Participating Organizations
MIGF was created by the Catalyst Coalition, a group of leading Minnesota-based 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 support for 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.
With Support From:
FAQs
The Minnesota Inclusive Growth Fund (MIGF) is a fund designed to increase access to flexible and affordable capital and support services for small businesses across the State of Minnesota.
The Catalyst Coalition is a consortium of leading Minnesota-based business support organizations that support entrepreneurs and their businesses. The goal of the Catalyst Coalition is to increase the quantity and quality of stage-appropriate support for 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. |
The fund is aimed at helping small businesses recovery and growth-stage businesses thrive in Minnesota.
- Metropolitan Economic Development Association (MEDA)
- Northside Economic Opportunity Network (NEON)
- Latino Economic Development Center (LEDC)
- African Economic Development Solutions (AEDS)
- Community Reinvestment Fund, USA (CRF)
- WomenVenture
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.
- 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.
- The business has been in business for at least one year prior to the date of the application or that such business launched post-COVID-19 and can demonstrate viability
As part of your full loan application, you will need to provide the following documentation to the community lender:
- Schedule of ownership (name, address, SS#, EIN, ITIN, consular ID card, foreign passports, percentage ownership, photo ID for any owners with more than 20% ownership), if applicable
- Executed Attestation Certificate
- Description of COVID-19 impacts and use of funds
- Personal guaranty (if applicable)
- Evidence of organization’s legal formation
- Information related to collateralization, as applicable
- Additional documentation, as requested
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.
Please contact one of the participating support organizations if you need help completing a MIGF loan application.
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:
- 5.00% for for-profit small businesses on a 60-month term
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.
Your information will be used by MIGF solely for the purposes of the loan program. We may also provide your information to one of our mission-driven business support organizations to ensure you and your business can access the holistic benefits of MIGF but your information will not be sold.
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:
- Firms engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted
- Corporate-owned franchises
- Branch banks
- Pay day loan stores
- Pawn shops
- Astrology, palm reading
- Adult bookstores, strip clubs
- Track waging facilities
- Not-for-profits (including not-for-profit social clubs)
- Trailer storage yards
- Marijuana dispensaries – growing, sale or distribution of Cannabis-related items (excluding legal CBD-related products)
- Firearms
- Online gambling
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 specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment).
Personal guarantees will be required for individuals who own 20% or more of a business.
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.
