Taking care of (small) business
A CPA’s guide to key DEED programs
| August/September 2026 Footnote
Editor's note: Updated July 27, 2026
We ran an article in
February/March Footnote about new and ongoing programs available to small businesses through the Minnesota Department of Employment and Economic Development (DEED), the state’s principal economic development agency.
The article provided a brief overview of numerous programs but, for this issue, we dive deeper into three programs to help you determine if they may be useful for your small business clients or your own companies.
Minnesota Forward Fund
Created in 2025, the Minnesota Forward Fund provides grants and loans to businesses making large private capital investments in new and existing industries for which federal funding requires a state match, as well as for communities and higher education institutions. The fund also aims to address capital needs of businesses for machinery and equipment purchases, building construction and remodeling and so on.
The fund received a $390 million appropriation, including $50 million for business attraction, retention and expansion projects, with individual businesses capped at $15 million in combined grants and loans, including no more than $10 million in grants. Another $100 million will match federal funding for bio-industrial manufacturing and aerospace research, development and testing projects. The remaining $240 million will match CHIPS and Science Act funding — up to 15% of project costs for projects up to $75 million.
Note: Applications by a business need to include a resolution of support for the project from the municipality or local unit of government where the project is located.
Deadline: Rolling basis year-round
More information: Email
forwardfund.deed@state.mn.us.
Automation Loan Participation Program (ALPP)
The Automation Loan Participation Program (ALPP) is part of the State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of the Treasury, making it subject to SSBCI rules. DEED makes companion loans intended to fill financing needs for businesses purchasing machinery, equipment or software to increase productivity and automation.
DEED companion loans must be matched by private financing at a ratio of up to 5:1 (minimum 1:1), with both funding sources used for productivity and automation-related machinery, equipment or software. Importantly, owner or business equity does not qualify as private financing. ALPP loans offer up to $500,000 at a 1% interest rate with five-to seven-year terms, optional payment deferrals of up to 12 months and the potential for DEED to take a subordinate collateral position at the lead lender’s request. The program cannot be paired with federally guaranteed financing for the same purpose and requires project costs less than $20 million and total financing less than $5 million.
Note: The application for an ALLP loan is made jointly by the business and the lead lender. Eligible businesses must be in the manufacturing, distribution, technology or warehousing industry with fewer than 750 employees.
Deadline: Rolling basis year-round
More information: Email
AutomationLoan.DEED@state.mn.us.
Growth Loan Fund
The Growth Loan Fund is also part of the State Small Business Credit Initiative (SSBCI) funding from the U.S. Department of the Treasury. The fund aims to support entrepreneurial growth throughout Minnesota through providing low-interest loans to early-stage businesses seeking to raise equity investments. Any business interested in the Growth Loan Fund must be engaged in technological innovation in Minnesota, including but not limited to fields of aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology and so on. A full list of eligible fields is available online.
After enrolling, businesses have 12 months to raise at least 70% of their stated goal — with the minimum being $400,000 — before submitting proof of investment and a loan application. Approved loans are based on 20% of the qualifying equity raised during that period and may be as much as $400,000.
Note: DEED will not issue a loan until the business provides proof of investment.
Deadline: Open as long as funds are available.
More information: Email
GrowthLoan.DEED@state.mn.us.
Discover other programs
These are just a few of the programs available to business clients in Minnesota. To learn more about these and any other programs geared towards small businesses,
visit their website.
