Making our community the best place to do business
Below please find a list of financing options to help improve your community and prepare for further economic development.
If your community would like assistance applying for any of these programs, please contact Katie Heppner at email@example.com or 218-837-5950.
Public Facilities Authority (PFA)
The PFA manages three revolving loan funds and several other financing programs to help local governments upgrade and construct wastewater treatment and collection facilities, to upgrade and construct drinking water distribution and storage facilities, and to address transportation, public facilities and other high-cost infrastructure needs.
This fund helps communities build or upgrade wastewater treatment plants to comply with discharge standards in the federal Clean Water Act.
This fund helps communities build drinking water storage, treatment and distribution systems that comply with the standards in the Safe Drinking Water Act.
Provides grants to units of local government to assist with the cost of wastewater treatment or stormwater projects.
Funding to help replace non-complying septic systems and straight pipes with systems that will be publicly owned, operated and maintained.
Financing for State, local and other government entities for transportation projects approved by the Minnesota Department of Transportation.
Provides supplemental grants to help communities build water treatment projects that address environmental or public health problems.
This program helps cities and counties reduce the costs of borrowing to build certain public facilities.
Small Cities Development Program
The DEED Small Cities Development Program (SCDP) helps cities and counties with funding for housing, public infrastructure and commercial rehabilitation projects.
Projects must meet one of three federal objectives:
- Benefit people of low and moderate incomes
- Eliminate slum and blight conditions
- Eliminate an urgent threat to public health or safety
For more information, please visit https://mn.gov/deed/government/financial-assistance/community-funding/small-cities.jsp
Workforce Housing Development Program
The DEED Workforce Housing Development Program targets communities in Greater Minnesota, where a shortage of housing makes it difficult for businesses to attract the workers they need.
This competitive grant program offers financial assistance to build market-rate residential rental properties for workers. Units of local government, nonprofits or the benefiting businesses must contribute $1 for every $2 provided by the program. Program grants provide up to 25 percent of the total project costs of a rental housing development.
For more information, please visit https://mn.gov/deed/government/financial-assistance/community-funding/workforce-housing.jsp
Boarder-to-Boarder Broadband Development Grant Program
This DEED program helps to promote the expansion of access to broadband service in unserved and underserved areas of the state. Grants will be awarded for last mile or middle mile broadband infrastructure acquisition and installation. The infrastructure deployed through the project must be scalable to broadband speeds of at least 100 Mbps download and upload. A grant awarded to a single project may not be for more than 50 percent of the project cost and not exceed $5 million.
Eligible applicants include an incorporated business or partnership, a political subdivision, an Indian tribe, a Minnesota nonprofit organized under state law, or a Minnesota LLC organized under state law for the purpose of expanding broadband access.
For more information, please visit mn.gov/deed/programs-services/broadband/grant-program/index.jsp
Cleanup Revolving Loan Program
This program provides low-interest loans through the U.S. Environmental Protection Agency to clean up contaminated sites that can be returned to marketable use.
Loans may pay for contamination cleanup, related site sampling and monitoring, and costs associated with meeting requirements for public participation in project review. Under certain conditions, loans may also be used to demolish buildings.
Cities, counties, developers, economic development authorities, housing redevelopment authorities, port authorities, and for-profit and nonprofit organizations are eligible.
To qualify for financing:
- Applicants must own or demonstrate legal control of the site to be developed
- The site must be enrolled in the appropriate Minnesota Pollution Control Agency Voluntary Cleanup Program (to learn more about the MPCA program and Brownfields, Click Here).
- The site must have a pre-approved Response Action Plan for cleanup of contamination defined by state law
- The applicant cannot have caused or worsened the contamination
For more information, please visit mn.gov/deed/government/financial-assistance/cleanup/cleanuprevolvingloanprogram.jsp
Contamination Cleanup and Investigation Grant Program
This DEED program helps communities pay for assessing and cleaning up contaminated sites for redevelopment. It assists development authorities in contamination investigations, cleanup of contamination, the development of Response Action Plans (RAPs).
Grants are awarded to those sites where there is planned redevelopment. Contamination Cleanup pays for up to 75 percent of the costs of cleaning up contaminants (defined under state law) or petroleum contamination not eligible for reimbursement under Minnesota's Pertrofund.
- Economic development authorities, cities, counties, port authorities, housing, and redevelopment authorities are eligible
- Both publicly and privately owned sites with known or suspected soil or groundwater contamination
For more information, please visit mn.gov/deed/government/financial-assistance/cleanup/contamination.jsp
Leaks for petroleum storage tanks are one of the nation's leading causes of groundwater pollution. To help address this problem, the Minnesota Legislature established the Petroleum Tank Release Cleanup Fund (Petrofund) which reimburses eligible applicants up to 90% of "reasonable and necessary" costs they incur in responding to a petroleum tank leak.
For more information, please visit https://mn.gov/commerce/industries/fuel/petrofund/
Demolition Loan Program
This program helps development authorities with the costs of demolishing blighted buildings on sites that have development potential bus where no immediate development plans exist.
The following terms apply:
- Loans will be low-interest (2 percent)
- Loans will be interest-free for the first two years
- Principal and interest payments will start in year three
- Loan terms cannot exceed 15 years
Eligible applicants are development authorities, including cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities.
Demolition activities, including interior remediation such as asbestos, abatement, are eligible. Loans would pay up to 100 percent of demolition costs for a qualifying site. The loans may also assist with site acquisition costs. Property and buildings must be publicly owned.
For more information, please visit mn/gov/deed/government/financial-assistance/cleanup/demolition.jsp
Greater Minnesota Business Development Infrastructure Grant Program
This DEED program helps stimulate new economic development, create new jobs and retain existing jobs through investments in public infrastructure.
It provides grants to cities of up to 5- percent of capital costs of the public infrastructure necessary to expand or retain jobs in the area, increase the tax base, or expand or create new economic development.
Eligible projects include publicly-owned infrastructure that supports economic development projects, including water and wastewater needs, storm sewers, utility extensions and streets.
Economic development projects include:
- Warehousing and distribution
- Research and development
- Agricultural processing
- Industrial park development
For more information, please visit mn.gov/deed/government/financial-assistance/business-funding/infrastructure/
Innovative Business Development Public Infrastructure Program
This DEED program focuses on job creation and retention through the growth of new innovative business and organizations. It provides grants to local governmental units on a competitive basis statewide for up to 50 percent of the capital cost of the public infrastructure necessary to expand or retain jobs.
Local governmental units (cities, counties, townships, special districts, or other political subdivisions or public corporations) are eligible to apply for a grant.
Cities must provide a 50 percent match of the project capital costs.
Projects must involve publicly-owned infrastructure related to a development project, or research park development that would be used by an innovative business that is engaged in proprietary technology.
Funds from this program can also be used for land acquisition and preparation, telecommunications, bridges, parking ramps, demolition, hazard remediation, predesign, construction, equipment and furnishings.
For more information, please visit mn.gov/deed/government/financial-assistance/business-funding/innovative
Redevelopment Grant Program
This program helps communities with the costs of redeveloping blighted industrial, residential or commercial sites and putting land back into productive use. It assists development authorities with demolition, infrastructure improvements, stabilizing unstable soil, installing ponding or other environmental infrastructure and interior abatement for adaptive reuse projects.
Grants are awarded to those sites where there is a planned redevelopment. Grants pay up to half of redevelopment costs for a qualifying site, with a 50 percent local match.
Eligible applicants are cities, counties, port authorities, housing and redevelopment authorities, and economic development authorities. Both publicly and privately owned sites qualify.
Applicants are ranked on several criteria. They include the tax base increase and job creation resulting from the redevelopment of the site.
For more information, please visit mn.gov/deed/government/financial-assistance/cleanup/redevelopmentgrantprogram.jsp
Shovel-Ready Site Certification
This program certifies that sites have already completed the most time-consuming technical and regulatory aspects of development including:
- Planning and Zoning
- Title work
- Environmental studies
- Soil analysis
- Public infrastructure engineering
- Ownership status
- General site information
- Specific tests and assessments
- Utility services
- Transportation access
Shovel-ready site certification offers communities a competitive edge by taking much of the time, expense, unpredictability and risk out of development. This makes the sites more attractive to companies and site-selection consultants looking for locations for business startups, expansions, or relocations.
Communities work with DEED to receive certification. For more information, please visit mn.gov/deed/government/shovel-ready
Transportation Economic Development Infrastructure Program (TEDI)
TEDI is a competitive grant program available to communities for public infrastructure and road projects that create jobs, support economic development and improve the transportation system. Funds may be used to fund predesign, acquisition of land, construction, reconstruction, and infrastructure improvements in coordination with trunk highway improvements undertaken by MnDOT.
TEDI is a collaboration with MnDOT's Transportation Economic Development (TED) program. For more information on that program, click here. TED may provide up to 70 percent of the costs for trunk highway improvements, while TEDI provides grants to assist with projects non-trunk highway costs of the projects.
Eligible applicants must be local units of government. All though private entities are not eligible, they may enter into agreements with eligible borrowers to request funding for eligible projects.
Matching funds from the applicant may come from other federal, state, local, and private funding sources.
For more information, please visit mn.gov/deed/ted.