National & Federal Funding
Opportunities
The U.S. Small Business Administration (SBA) provides low-interest disaster loans to assist businesses through disaster recovery periods and provide the necessary working capital to help small businesses impacted by disasters survive until normal operations resume. There are currently 13 active “Disaster Declarations” in the state of Minnesota for droughts, or lack of snow, this winter.
Loan Guidelines and Terms
- Maximum Loan Amount: $2,000,000
- First Payment: Deferred for 12 months with no interest accrual
- Interest Rate: Not to exceed 4%
- Loan Term: Up to 30 years, with no pre-payment penalty or fees
- Collateral: Required for loans over $25,000
The U.S. Small Business Administration (SBA) operates the 7(a) Loan Program that allows lenders to provide financial help for small businesses with special requirements.
Eligible 7(a) loan projects include:
- Acquiring, re-financing or improving real estate and buildings
- Short- and long-term working capital
- Refinancing current business debt
- Purchasing and installation of machinery and equipment, including AI-related expenses
- Purchasing furniture, fixtures and supplies
- Changes of ownership (complete or partial)
In order to be eligible, businesses must not be able to obtain the desired credit on reasonable terms from non-federal, non-state and non-local government sources. The maximum 7(a) loan amount a business can apply for is $5 million.
7(a) loans are administered through local lenders, and the SBA has a tool for potential loan applicants to identify lenders in their region.
The U.S. Small Business Administration (SBA) operates the 504 Loan Program that provides long-term, fixed rate financing for major fixed assets that promote business growth and job creation.
Eligible 504 loan projects include:
- Purchase of existing buildings or land;
- Construction of new facilities;
- Purchase of long-term machinery and equipment;
- Improvement of existing facilities; or
- Improvement of land, streets, utilities, parking lots and landscaping.
The maximum 504 loan amount a business can apply for is $5.5 million. Benefits of utilizing a 504 loan include fixed payments to help businesses maintain consistent cash flow, term lengths up to 25 years and below-market fixed rates for the entire loan term.
The U.S. Small Business Administration (SBA) operates a microloan program that provides loans up to $50,000 to help small businesses and certain not-for-profit child care centers start or expand.
Eligible microloan expenses include:
- Working Capital
- Inventory
- Supplies
- Furniture
- Fixtures
- Machinery
- Equipment
Microloans are administered through nonprofit community-based organizations with experience in lending. The SBA has a tool for potential loan applicants to identify lenders in their region.
The U.S. Department of Agriculture (USDA), Rural Development Office, administers the Value-Added Producer Grant (VAPG) program that helps agricultural producers enter value-added activities to generate new products, create and expand marketing opportunities and increase producer income.
The maximum grant award is $75,000 for Planning Grants and $250,000 for Working Capital Grants. A match requirement of 100% of the grant amount is required for all applications. Examples of planning activities that would qualify for grant expenses are conducting feasibility studies, developing business plans for processing and marketing the proposed value-added product. Examples of working capital that would qualify for grant expenses are processing costs, marketing expenses, inventory expenses and salary expenses.
2024 VAPG are due electronically by April 11, 2024 or through paper by April 16, 2024.
The U.S. Department of Agriculture (USDA), Rural Development Office, administers the Meat and Poultry Processing Expansion Program (MPPEP) that provides grants to help eligible processors expand their processing capacity.
Grant awards can be used to expand processing capacity by supporting activies such as:
- Building, modernizing or expanding existing processing facilities, including mobile slaughter units
- Developing, installing or modernizing equipment and technology
- Ensuring compliance with packaging and labeling requirements
- Upholding occupational and other safety requirements
- Modifying facilities or equipment to protect food safety
- Offsetting cost associated with becoming an inspected facility
- Staffing or operational costs specifically tied to the proposed project
- Supporting workforce recruitment, training and retention
- Posting USDA’s standard infrastructure investment signage during construction of the project
The minimum grant award amount is $250,000. The maximum grant award amount is $10 million, or 30% of the total project costs, whichever is less.
This application is currently closed. Please check back at a later date to see if the program has begun accepting additional funding applications.
The Work Opportunity Tax Credit (WOTC) is a federal tax credit available to all private sector businesses as an incentive to employers to hire workers in certain groups who consistently experience high rates of unemployment. The tax credit allows employers to reduce their federal tax liability by up to $9,600 per new hire. The tax credit applies to temporary, seasonal, part-time and full-time workers. The tax credit is available for new hires with job start dates through December 31, 2025.
For the employer to claim the WOTC for a new hire, the employee must be certified as a member of a targeted group by meeting the criteria described in any of the groups listed below:
- Short-Term Temporary Assistance for Needy Families Recipient
- Qualified Veteran
- Disabled Veteran
- Unemployed Disabled Veteran
- Unemployed Veteran – Four Weeks
- Unemployed Veteran – Six Months
- Qualified Ex-Felon
- Designated Community Resident
- Vocational Rehabilitation Referral
- Qualified Summer Youth
- Food Stamp Recipient
- Supplemental Security Income Recipient
- Long-Term Family Assistance Recipient
- Qualified Long-Term Unemployment Recipient
In partnership with American Express, the Main Street America Backing Small Businesses grant program supports economically vulnerable and under-resourced small businesses with community reach or cultural significance. A small business with community reach is involved in and critical to the surrounding community or serves a cultural- or ability-specific need. These businesses are often long-standing or legacy businesses that provide continuity and a sense of identity to a neighborhood or specific cultural group. Businesses with community reach have also been intentional about developing core values and a business model that supports their communities or addresses an acute community need.
Grants up to $10,000 are available. Eligible grant expenses include, but are not limited to:
- Accessibility Upgrades (ex: ramp, menu translation, accessible website redesign)
- Community Events and Programs (ex: community fundraisers, partnerships with other businesses)
- Equipment and Inventory (ex: point-of-sale devices, display cases, kitchen equipment)
- Marketing (ex: website development, social media campaigns)
- Operational Strategy (ex: branding packages, accounting software, business coaching)
- Physical Improvements (ex: signage, awnings, painting façade)
- Sustainability Upgrades (ex: solar panels, recyclable packaging)
- Technology Upgrades (ex: online storefront development, online ordering)
- Utilities
To be eligible, businesses must be in a brick-and-mortar location and operate in an older or historic main street, downtown or commercial district.