The following incentives and assistance programs are provided through the State of Minnesota and federal government.
Shovel Ready Program
Approximately 17.5 acres of land in Schumann Business Park are certified by the State of Minnesota as “Shovel Ready” for immediate commercial & industrial development.
A certified “Shovel Ready” site means that the following items have been verified by the State of Minnesota as completed:
- Initial planning & zoning
- Property survey (ALTA)
- Title & easement searches / title insurance
- Phase I & II (if needed) environmental studies
- Soils analysis
- Geotechnical studies
- Public infrastructure engineering
- Utility service capacities documents
Documentation of findings from the above studies are available at City Hall.
Minnesota provides a number of tax credits for business growth and investment including Job Creation Fund, Angel Tax Credit, the Research & Development Tax Credit, as well as history tax credits. The Job Creation Fund requires city approval.
Minnesota Investment Fund (MIF)
The Minnesota Investment Fund provides grants to help add new workers and retain high-quality jobs on a statewide basis. The focus is on industrial, manufacturing, and technology-related industries to increase the local and dstate tax base and improve the economic value for all Minnesota citizens.
At least 50 percent of total project costs must be privately financed through owner equity and other lending sources (most applications selected for funding have at least 70 percent private financing).
Public Infrastructure Grants
Minnesota DEED provides a variety of grants to local governments to help with public infrastructure improvements for business expansion and retention. Grants are based on need, subject to business type, tax base & job creation, and availability. Grant program titles include the Business Development Public Infrastructure (BDPI) and Transportation Economic Development (TED) programs.
Small Business Development Centers
The Office of Small Business Development Centers (SBDC) provides management assistance to current and prospective small business owners. SBDCs offer free, one-stop assistance to individuals and small businesses by providing a wide variety of information and guidance in central and easily accessible brand locations. The program is a cooperative effort of the private sector, the educational community and federal, state and local governments and is an integral component of Entrepreneurial Development’s network of training and counseling services.
504 Loan Program
A Certified Development Company (CDC) is a nonprofit corporation set up to contribute to the economic development of its community. CDCs are located nationwide and operate primarily in their state of incorporation (Area of Operation). CDCs work with SBA and private-sector lenders to provide financing to small businesses through the CDC/504 Loan Program, which provides growing businesses with long-term, fixed-rate financing for major fixed assets, such as land and buildings.
Typically, a 504 project includes:
- A loan secured from a private sector lender with a senior lien covering up to 50 percent of the project cost;
- A loan secured from a CDC (backed by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost;
- A contribution from the borrower of at least 10 percent equity.