Governor Tim Walz has unveiled a significant $33 million investment aimed at fueling the growth of emerging and expanding small businesses across Minnesota. This marks the second phase of funding through the State Small Business Credit Initiative (SSBCI), a federal program designed to bolster entrepreneurship and economic vitality in communities throughout the state.
To date, nearly $29.5 million in SSBCI funds has already supported 160 businesses across 44 cities. With this new infusion, the program is set to expand its impact, supporting an additional 225 small businesses—from manufacturing and healthcare to hospitality and clean technology ventures.
Governor Walz emphasized the irreplaceable role of small businesses in Minnesota’s economic framework, recalling his own small-town roots: “Small businesses are job creators that fuel innovation and strengthen our communities. Making Minnesota the best state to live means it’s a place where entrepreneurs can put their ideas into action.”
This commitment underscores the administration’s goal of ensuring entrepreneurs have the resources they need to thrive.
The $33 million will flow through six key programs managed by Minnesota’s Department of Employment and Economic Development (DEED):
- Automation Loan Participation Program, offering low-interest loans up to $500,000 to businesses involved in manufacturing, distribution, technology, and warehousing.
- Growth Loan Fund, providing early-stage companies engaged in technological innovation with low-interest loans of up to $400,000 to align with equity investment plans.
- Minnesota Loan Guarantee Program, guaranteeing loans up to $800,000 through approved lenders.
- Small Business Loan Participation Program, where DEED co-invests between $10,000 and $250,000 alongside loans made by nonprofit community partners.
“Small businesses makenewbreakthroughs intech, manufacture essential goods, and anchor ourneighborhoods,” said DEED Commissioner Matt Varilek, highlighting that approximately 99.7% of Minnesota businesses arecategorizedassmallenterprises. The goalis clear:tocontinuestrengthening the backbone of the state’s economy. One beneficiary, Hoyo Sambusa—a Minneapolis-based business sharing authentic Somali cuisine—shared how the
Automation Loan Participation Programenabled them to expand production, showcase their cultural heritage, and create jobs that support families in the community.
Looking ahead, this investment represents just one step in a broader SSBCI rollout expected to total $97 million over three rounds. Governor Walz and DEED remain focused on ensuring that entrepreneurs across the Sstate—not only in the Twin Cities but in rural and underrepresented regions—have equitable access to the capital and tools they need to start, expand, and succeed.
For aspiring and growing business owners, more information is available through the SSBCI portal administered by DEED, where eligibility details and lending partnerships are outlined.
