In 2010, Minnesota created a new investment tax credit for early-stage companies.  Funded at $59 million over five years, the program provides a 25 percent income tax credit for investments into qualified technology businesses.  A unique feature of the program is that the credit can be “refundable,” meaning that an investor who has no tax liability in Minnesota can make an investment into a qualified Minnesota firm and receive a full refund for the eligible credit amount.

Job Opportunity Building Zone (JOBZ) Program

Albert Lea/Freeborn County was approved for JOBZ status to provide expanding businesses with the opportunity to qualify for tax exemptions. The purpose of the program is to revitalize economically distressed areas by creating tax exempt zones that will attract jobs, business and people to rural communities. Approved in January, 2004, JOBZ provides for tax exemptions to qualified businesses, within a designated zone for a maximum of 12 years. Qualified businesses are exempted from the corporate franchise tax; income tax for business operators or investors; sales tax on goods and services used in the zone and property tax on improvements but not on land. Also included is an employment tax credit for high paying jobs.

The Minnesota Investment Fund (651-297-1391)
• Assists expanding businesses in creating and retaining high quality jobs, with an emphasis on manufacturing, technology and professional service employment. Grants are awarded to local governments which, in turn, make loans for specific business projects or finance public infrastructure improvements.

The Small Business Development Loan Program (651-297-1391)
• Provides loans to industrial, manufacturing or agricultural processing businesses for land acquisition, building construction or renovation, machinery and equipment. Projects must enhance the local tax base and create or retain jobs.

The Rural Challenge Grant Program (651-297-1170)
• Provides loans to businesses located outside of the even-county Twin Cities metropolitan are. These loans stimulate private investment, create jobs for low and moderate income people and diversify rural Minnesota's economic base. Loans can be made to start-up or expanding businesses, including manufacturers, agricultural or food processors, service companies and technologically-innovative industries.

The Capital Access Program (651-296-1145)
• Provides limited guarantees to private lenders for loans made to small and medium sized businesses for start-up or expansion costs.

Southern Minnesota Initiative Foundation

Small Enterprise Loan Program (507-455-3215)
• Small loans are available for start up or expansion of businesses engaged in: Manufacturing, retail, service, childcare/eldercare. A small business with five employees or less, not including the owner; demonstrates a need for financing through a realistic business plan; projects sufficient income to repay the loan within an appropriate time frame; demonstrates good character and a strong commitment to a business plan; demonstrates an inability to obtain financing from a traditional lender; businesses located in 20-county service area. Business owners may use loan funds on the following: working capital, supplies, inventory and machinery/equipment. Loan size, up to $35,000.

Revolving Loan Program (507-455-3215)
• Makes working and expansion capital loans in partnership with local lending institutions, economic development organizations and government agencies to help "fill the gap" between available and needed capital. Must create or retain jobs that pay livable wages with benefits, must have adequate cash flow to service debt, must be able to secure loan with tangible collateral, must demonstrate a lack of available private financing, must contribute to the region's economic competitiveness, must be committed to the region and must be located in 20-county service area. The funds can be used for working capital, land and building acquisition, machinery/equipment, inventory and renovation. Loans will be considered up to $200,000, but cannot exceed 50 percent of the total project.

Step-Up Loan Program (507-455-3215)

• Makes loans to licensed day care providers, both home-based and childcare centers.

FIND Fund (507-455-3215)
• Is a source of equity capital for product development and technology improvement. Maximum of $25,000 per investment. Project funding requires a minimum of a one-to-one equity or cash match dollar for every dollar of FIND Fund investment. Business owners can use fund for prototype development and testing, marketing development, research and analysis, organizational development, product testing and analysis, new product tooling and fixtures, engineering drawings, working capital and patent opinions and filings.

USDA Rural Development Loan Fund:
USDA Rural Development recently granted money to Freeborn Mower Cooperative Services (FMCS) for community loans. FMCS will use the funds to establish a revolving loan fund with the City of Albert Lea. The city will use funds to finance expansion of sewer and water projects to accommodate industrial development.

Small User Revolving Loan Fund:
The Albert Lea Economic Development Agency recently approved a new revolving loan fund to primarily assist entrepreneurs located in the Albert Lea Business Development Center (ALBDC) or start-up companies in Albert Lea/Freeborn County. Manufacturing and service-related companies can apply for up to $50,000.00 towards machinery and equipment and working capital. Applications require a current business plan, two years of business financial statements, two years of personal financial statements and cash flow projects for two years. For more information on this new program contact: Dan Dorman at 507-373-3930.

Job Opportunity Building Zone (JOBZ) Program
Albert Lea/Freeborn County was approved for JOBZ status to provide expanding businesses with the opportunity to qualify for tax exemptions. The purpose of the program is to revitalize economically distressed areas by creating tax exempt zones that will attract jobs, business and people to rural communities. Approved in January, 2004, JOBZ provides for tax exemptions to qualified businesses, within a designated zone for a maximum of 12 years. Qualified businesses are exempted from the corporate franchise tax; income tax for business operators or investors; sales tax on goods and services used in the zone and property tax on improvements but not on land. Also included is an employment tax credit for high paying jobs.