Final SSBCI program in Minnesota rolled out
DEED Accepting Proposals from Lenders for Small Business Loan Participation Program
Dear community partners,
The Minnesota Department of Employment and Economic Development (DEED) has launched the Small Business Loan Participation Program [ [link removed] ] as part of the recently announced $97 million State Small Business Credit Initiative (SSBCI).
Through the program, DEED will purchase 25% to 30% participations in loans made by approved non-depository Community Development Financial Institutions (CDFIs) and nonprofit lenders. Businesses seeking loans will apply directly with enrolled lenders, which are responsible for all credit decisions and loan terms within SSBCI restrictions. Enrolled lenders must already offer existing loan programs.
Desired qualifications for lenders include those that prioritize reaching Socially and Economically Disadvantaged Individuals (SEDI)-owned businesses or CDFI Investment Areas. SEDI-owned businesses include Black, Indigenous, People of Color, women, veterans, and rural residents, among other economically disadvantaged individuals.
*DEED is now accepting proposals from lenders *on DEED’s Competitive Grants and Contracts page [ [link removed] ].
Interested lenders should carefully review the Request for Proposals (RFP). Lenders may submit questions about the RFP to Lori Hanson, Solicitation Administrator, at
[email protected] until December 14 at 4:30 p.m. Answers will be posted online [ [link removed] ] as soon as possible after the question period closes.
When submitting proposals, lenders should be sure to submit all required attachments. Proposals must be submitted by January 6, 2023 at 4:30 p.m. Proposals that are missing required attachments or are late will not be considered.
*More funding opportunities for Minnesota small businesses*
The Small Business Loan Participation Program is the final of six programs that make up DEED’s new SSBCI initiative.
The initiative includes the *Minnesota Loan Guarantee Program* [ [link removed] ], which provides 80% loan guarantees for qualified loans made by enrolled institutions. *DEED is still accepting applications from lenders to join the Loan Guarantee Program!*
Other programs are:
* The *Growth Loan Fund* [ [link removed] ], providing direct loans to innovative seed- and early-stage technology businesses;
* The *Automation Loan Participation Program* [ [link removed] ]*,* providing companion loans to fill gap financing needs for small manufacturers to purchase machinery, equipment, or software to increase productivity and automations; and
* The *Direct Investment and Multi-Fund Investment Programs* [ [link removed] ], two venture capital programs offered by the University of Minnesota investing in Minnesota-based seed- and early-stage businesses in the advanced manufacturing, agtech/foodtech, climate tech, life sciences, software, and technology sectors.
*Many of DEED’s resources for businesses are available on our new Small Business Hub [ [link removed] ]. *
Thank you for your ongoing partnership and helping DEED provide funding to small businesses in communities around Minnesota.
Sincerely,
Steve
Steve Grove
Commissioner
Minnesota Department of Employment and Economic Development
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