The Minnesota Department of Employment and Economic Development was awarded $15.5 million in federal funding for programs that will support small-business lending in the state.
The funding, from President Obama’s Small Business Jobs Act, will provide loan guarantees to lenders making loans to Minnesota small businesses, make money available to lenders for direct loans of up to $150,000 and provide seed money for angel investment funds.
“This award is great news for Minnesota businesses, which are having difficulties accessing the capital necessary to expand and provide new jobs in our state,” said Gov. Mark Dayton, in a news release. “President Obama’s initiative will mean more jobs for Minnesota.”
“These funds will help break down barriers to loans for creditworthy small businesses looking to invest and hire in their local communities,” said U.S. Treasurer Rosie Rios. “This program will help ensure that more Main Street entrepreneurs have access to the credit they need to expand their businesses and create new jobs.”
DEED Commissioner Mark Phillips said tighter lending restrictions by banks and other financial entities since the recession have made it more difficult for promising businesses to obtain the funding they need to survive the early stages of development. “These programs will put money into the hands of small-business owners and given them an opportunity to grow and create jobs,” Phillips said.
DEED officials estimate the programs will serve 1,200 small businesses and attract an additional $200 million in private investment. Altogether, the agency anticipates 3,000 new jobs will be created.
