Skip to main content.

State Incentives

Angel Loan Fund

Minnesota's Angel Loan Fund Program (ALF) provides an additional funding option for businesses certified to participate in Minnesota's Angel Tax Credit Program.

Overview

The program provides a direct loan for 10 percent of the total amount of equity investment received in the business' approved funding round. Only one loan may be issued to each business for the duration of the ALF. At least one equity investment must be made by an investor that is both certified by the MN Angel Tax Credit Program and qualified as an Accredited Investor per the U.S. Securities and Exchange Commission under Rule 501 of Regulation D. However, the total equity investment attained for the round is not exclusive to investments made to meet the requirements of the Angel Tax Credit Program.

Eligible Applicants

Businesses certified to participate in the Angel Tax Credit Program during any of the program years with fewer than 500 employees.

Eligible Use of Funds

Funds may be used for start-up costs, working capital, business acquisitions and expansions, franchise financing, equipment loans, inventory financing, construction, and commercial, non-passive real estate acquisitions.

Maximum Available

10 percent of equity raised after program enrollment; $20,000 minimum loan amount, $250,000 maximum.

Interest Rates and Terms

Zero-percent interest, seven-year term, non-recourse, deferred, with a balloon. If the business is sold during the term, business will submit risk mitigation fee compensation equal to 30 percent of the original loan principal.

Application Process

  1. Business obtains Minnesota Angel Tax Credit Program Certification during any of the program years.
  2. Business submits the ALF Business Enrollment Application Form and required supporting documents to DEED.
  3. Business receives ALF Acceptance Letter from DEED outlining maximum loan amount and eligible funding round beginning and end dates. Do not accept any funds until you receive official notice that you've been approved to participate in the program. 
  4. Business submits the ALF Proof of Investment and Loan Request Form and supporting documents, once maximum investment has been raised during the eligible funding round.
  5. Business submits signed ALF Loan Agreement, ALF Promissory Note, and ALF Sales Proceeds Agreement.
  6. DEED distributes loan proceeds.

Application and Forms

Select the links below to view, download or print these forms:

Funding Map

Use the interactive map to see where Angel Loan fund projects are located throughout Minnesota.

You can see the amount of the awards, project costs, new jobs created, average wages and more for each project and download the data.

For More Information

Abdullahi (Moe) Mohamed 
651-259-7456 or 800-657-3858 
Abdullahi.Mohamed@state.mn.us

Category: MN State Programs

More MN State Programs

Overview The Minnesota Emerging Entrepreneur Loan Program (ELP) supports the growth of businesses owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities. DEED provides grant funds to a network of nonprofit lenders which use these funds for loans to start-up and expandin... Learn More
The Minnesota 21st Century Fund makes loans or equity investments in innovative mineral, steel, or other industry processing, production, manufacturing, or technology projects located in the taconite relief tax area. The fund may also make grants to municipalities or counties for public infrastructure to suppor... Learn More
Overview Funds are awarded to local units of government who provide loans to assist expanding businesses. Cities, counties, townships and recognized Indian tribal governments are eligible for this fund. Before You Apply Use this checklist to determine if your project may be eligible for MIF financing. You must meet AL... Learn More
The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets. Companies deemed eligible to participate may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or makin... Learn More
Overview Our Tourism Business Septic Tank Replacement Program makes low-interest financing available to existing tourism-related businesses that provide overnight lodging and need to replace a failed septic system. Participation loans in cooperation with financial institutions can be made for up to 50 percent of the total cos... Learn More
Fast Fact Image

Todd County was created on February 20, 1885 (Organized in 1873) from Cass County.  The county was named in honor of John Blair Smith Todd, commander of Fort Ripley (1849-56); general in the Civil War; delegate in Congress from Dakota Territory, 1861 and 1863-65; governor of Dakota Territory, 1869-71.