The average small business loan in Minnesota ranges up to $2 million. This makes it one of the best states to get a business loan, with 503,055 small existing businesses in the state. There are plenty of financial companies in Minnesota that can help your small businesses grow from the ground up. On this page, we explore the financing options in Minnesota.
Top Minnesota Small Business Loan Options
There are various Minnesota small business loan options offered by banks and various organizations. Every small business has the opportunity to receive financial relief.
Some Minnesota small business loan options are described below.
1. Prairieland Economic Development Corporation
The Prairieland Economic Development Corporation is a certified development company (CDC) that has been offering financing and small business loans to Minnesota-based businesses since 1983. The main goals of the company include increasing entrepreneurship and employment within the state, expanding the small business sector, and improving community relationships and services.
With the Prairieland Economic Development Corporation, small business owners can apply for SBA 504 loans or direct loans. The revolving loan program is intended to help small businesses in rural parts of Minnesota to receive non-traditional financial assistance, mainly through the USDA’s Rural Development Intermediary Relending Program.
2. Minnesota Business Finance Corporation
The Minnesota Business Finance Corporation is a certified development company that works along with conventional financial companies and lenders in assisting small businesses to secure funds. The loans typically offered through the corporation are the 504 Loans that provide long-term financing for small businesses.
As such, the SBA 504 Loan can go up to $5 million with an interest rate of about 5% to 6% for the CDC portion. This type of loan can be used to finance the acquiring or purchasing of fixed assets, real estate, and equipment. To issue the loan, the bank, the SBA-approved CDC (which, in this case, is the Minnesota Business Finance Corporation), and the loan borrower are involved in the process.
3. North Star Bank
North Star Bank is one of the most flexible Minnesota small business loan providers. It’s also a local supporter for striving and startup small businesses.
The bank offers a variety of Small Business Administration loans. The loans depend majorly on the business age, the credibility, the impact your business has, and lastly the sole purpose of your loan.
To suit a wide range of loan-seeking businesses, North Star Bank offers more short-term and long-term small business loans and letters of credit. For businesses that aren’t yet sure of what loan is most suitable for them, North Star Bank is the to-go place. They have large financial options available.
Summary of Top 3 Minnesota Small Business Loan Providers
Loan Provider |
Features |
Loan amount |
Interest Rates |
Repayment Period |
The Prairieland Economic Development Corporation |
Offers direct loans and SBA 504 Loans for Minnesota-based small businesses |
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|
Minnesota Business Finance Corporation |
Offers SBA 504 loans to finance purchasing or acquiring real estate, fixed assets, and equipment |
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North Star Bank |
Provides short-term and long-term small business loans and letters or credit |
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Top Online Minnesota Small Business Loan Options
The one thing that we have learned from the coronavirus pandemic is that technology has endless possibilities for growth. Almost everything is available online as well as being able to get your online loan application evaluated online within a short period.
In a time where everything is fast-paced and digital, the importance of online loans continues to grow. Small businesses are now able to obtain financial assistance without too much hassle and without having to visit a lot of places. Examples of companies offering online loans are listed below.
