States – Minnesota

Minnesota Resources

Growth Acceleration Program

Enterprise Minnesota
310 4th Ave So., Suite 7050
Minneapolis, MN 55415
612-373-2900

Purpose of Initiative

The Growth Acceleration Program (GAP) was enacted by the Minnesota State Legislature to help Minnesota’s small manufacturing and manufacturing-related companies accelerate business improvements and the application of technologies identified as critical to increasing competitiveness and growth. GAP is a direct state investment program aimed at helping manufacturing companies of 250 or fewer full-time employees to access business improvement services.

Projects Funded

Funds awarded under GAP must be used to assist an eligible company with business services and products that will enhance the operations of the company. GAP funds may not be used for financing, overhead costs, construction, renovation, equipment purchase, or computer hardware.

Eligibility

In order to be eligible for GAP funding, companies must:

  • Be located in Minnesota;
  • Be a manufacturing firm or a firm with manufacturing-related functions;
  • Operate as an independent profit center;
  • Employ 250 or fewer full-time equivalent employees;
  • Submit an application including an overall company plan for improvement, with prioritized components and anticipated economic benefits;
  • Demonstrate their need for a GAP investment in order to adopt the highest priority improvements.

Application Process

Firms interested in GAP must fill out and submit to Enterprise Minnesota a complete application requesting funding. This application must include documentation of the company’s overall plan for technology and business improvement, a prioritized list of the company’s improvement needs, and the anticipated economic benefits. The application must document the company’s financial need for GAP funding.

To apply please fill out the Contact form here, or call (612) 373-2900/1-800-325-3073

Award Details

The maximum amount of GAP funding awarded to an eligible company in any calendar year is $50,000. A company may request GAP funding for multiple projects, as long as no one project exceeds $25,000.

Southern Minnesota Initiative Foundation Small Enterprise Loan Fund

Southern Minnesota Initiative Foundation
525 Florence Avenue
P.O. Box 695
Owatonna, MN 55060
(507) 455-3215
inquiry@smifoundation.org

Purpose of Initiative

Southern Minnesota Initiative Foundation Incentive Grants (SMIF)’s Small Enterprise Loan Fund provides micro loans through a partnership with the Small Business Administration (SBA). These loans support small business owners or start-up entrepreneurs who create service, retail, local foods, and manufacturing businesses. All Small Enterprise Loan recipients are eligible to receive free technical assistance. Additional funds are available through the Huisman Family Fund for those living in Faribault County and the surrounding counties.

For more information please contact Marcia Haley at (507) 214-7021, or email.

Research and Development Tax Credit

Purpose of Initiative

Companies that engage in certain research and development (R&D) activities in Minnesota may qualify for the Credit for Increasing Research Activities or “R&D credit.”

Beginning with tax year 2010, you may claim the R&D credit on your Minnesota income tax return if both of the following are true:

  • You are a partner in a partnership or shareholder in an S corporation.
  • The partnership or business had qualifying R&D expenses in Minnesota that exceeded its “base amount” (as calculated for the federal R&D credit but based on Minnesota gross receipts).

The amount of the credit is equal to 10 percent of qualifying expenses up to $2 million, and 2.5 percent for expenses above that level. Qualifying expenses include:

  • R&D expenses that qualify for the federal R&D credit and are for research done in Minnesota.
  • Contributions to qualified nonprofit organizations that make grants to small, technologically innovative businesses in Minnesota during their early development stages.

Qualifying expenses are the same as for the federal R&D credit – defined in Section 41 of the Internal Revenue Code – but must be for research done in Minnesota.

For more information, contact the Minnesota Department of Revenue at (651) 556-3075 or email.

Updated March 30, 2018 by Kevine Lidoro

HEADQUARTERS

3161 Union Street
N. Chili, NY 14514

MAILING ADDRESS

Dawnbreaker, Inc.
2117 Buffalo Rd., Suite 193
Rochester, NY 14624

PHONE

(585) 594-0025
Fax: (585) 594-8623