DEED Awards $20.7M for Greater Minnesota Economic Development



Minnesota Department of Employment and Economic Development Press Release


*For Immediate Release*




Mary Haugen

[email protected]




October 16, 2025

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*DEED Awards $20.7M for Greater Minnesota Economic Development*

St. Paul, MN – The Minnesota Department of Employment and Economic Development (DEED) today announced over $20.7 million in grants through the Small City Development Program (SCDP) that will support economic development in 33 cities and counties in Greater Minnesota, rehabilitating nearly 300 properties.

"Funding through DEED's Small Cities Development Program enables cities to undertake projects that promote economic vitality and quality of life in their communities,” said *DEED Commissioner Matt Varilek*. “These grants ensure all Minnesotans feel the benefits of economic development and have a safe, healthy community and home, regardless of where they live.”

SCDP helps cities, townships and counties with funding for housing, public infrastructure and commercial rehabilitation projects. The program primarily supports communities of low or moderate incomes in eliminating slum and blight conditions or urgent threats to public health or safety. This year, 92% of SCDP grant recipients serve people with low and moderate incomes.

Cities with fewer than 50,000 residents and townships and counties with fewer than 200,000 residents are eligible. DEED administers the grants, which are funded by the U.S. Department of Housing and Urban Development.

Communities can apply for funds for one or more of the following types of projects:


* Residential owner-occupied or rental property improvement projects to increase the quality of dwellings suited for individual or family occupancy. Examples include exterior repairs and replacement projects, insulation, HVAC, electrical, plumbing, lead paint remediation or accessibility modifications.
* Commercial property improvement projects for buildings occupied by retail and independent businesses. This can include façade improvements (e.g. awnings, exterior signs), building code issues and energy efficiency.
* Public facility improvement projects that serve neighborhoods or communities, such as community centers, streetscapes or wastewater treatment projects.

The SCDP program is now accepting preliminary proposals for its next round of grants, the first stage in the grant application process. For more information and to learn how to apply for SCDP grants, visit the SCDP website [ [link removed] ]. SCDP project funding amounts listed below.

*Annandale, $875,440 *

Rehabilitation of 15 owner-occupied homes, 12 multi-family units and six commercial buildings.

*Appleton, $1,200,000 *

Rehabilitation of 42 multi-family units and storm sewer improvements.

*Barnesville, $1,198,000 *

Rehabilitation of 21 owner-occupied homes and 13 commercial buildings.

*Brainerd, $600,000*

Public facility improvements to the streetscape.

*Canby, $1,069,500 *

Rehabilitation of 18 owner-occupied homes and 12 commercial buildings.

*Eden Valley, $600,000 *

Public facility improvements to water distribution lines.

*Elizabeth, $600,000 *

Public facility improvements to the watermain.

*Erskine, $600,000 *

Public facility improvements to the water tower.

*Fairfax, $600,000 *

Public facility improvements for watermain looping.

*Flensburg, $600,000 *

Public facility improvements to wastewater lines.

*Fulda, $1,155,654 *

Rehabilitation of 21 owner-occupied homes and streetscape improvement.

*Hackensack, $600,000 *

Public facility improvements to the streetscape.

*Hanley Falls, $600,000 *

Public facility improvements to water distribution lines.

*Hendrum, $600,000 *

Public facility improvements to water distribution lines.

*Kennedy, $600,000 *

Public facility improvements to water distribution lines.

*Lake Lillian, $600,000 *

Public facility improvements to water distribution lines.

*Lamberton, $600,000 *

Public facility improvements to water distribution lines.

*Lancaster, $143,750 *

Rehabilitation of 10 multi-family units.

*Mentor, $425,500 *

Rehabilitation of 10 owner-occupied homes and three commercial buildings.

*Nerstrand, $600,000 *

Public facility improvements to water distribution lines.

*Norwood Young America, $600,000 *

Public facility improvements to the streetscape.

*Plainview, $599,982 *

Rehabilitation of 21 owner-occupied homes.

*Russell, $600,000 *

Public facility improvements to water distribution lines.

*Sebeka, $582,650 *

Rehabilitation of the wastewater treatment plant.

*South Haven, $600,000 *

Public facility improvements to the watermain.

*St. Joseph, $287,500 *

Rehabilitation of 10 owner-occupied homes.

*Tracy, $600,000 *

Rehabilitation of the water plant.

*Walnut Grove, $600,000 *

Public facility improvements to water distribution lines.

*Wanamingo, $345,000 *

Rehabilitation of 12 owner-occupied homes.

*West Union, $600,000*

Public facility improvements to wastewater lines.

*Winger, $598,000 *

Rehabilitation of 15 owner-occupied homes and four commercial buildings.

*Kanabec County, $575,000 *

Rehabilitation of 20 owner-occupied homes.

*Lake of the Woods County, $575,000 *

Rehabilitation of 20 owner-occupied homes.

"DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. Find out how DEED delivers for Minnesota by visiting the""_ _""DEED website" [ [link removed] ] or" ""CareerForceMN.com" [ [link removed] ]", and learn how to do business in Minnesota [ [link removed] ]."

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"Upon request, this information can be made available in alternate formats for people with disabilities by contacting the DEED Communications Office at 651-259-7161."





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