|At a glance — 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.
Banks have been a striving trusted loan service for years, which is why some banks have created dedicated commercial bankers.
The Small Business Administration offers loans financed through Merchants Bank. The loan programs are:
- Microloan program - These are short-term small amount business loans.
- 7(a) loan program - The 7(a) loan program is suitable for starting businesses, business acquisitions, and the expansion of small businesses. It’s the most common small business loan program. It has also been the to-go loan program for years for small business entrepreneurs.
- Disaster loans - Most businesses face problems and unexpected challenges as they grow. Disaster loans aid in small business repairs and replacement of items due to a disaster. These loans also help rebuild small businesses and offer economic relief with small interest payments.
Currently, small businesses affected by the coronavirus pandemic have the opportunity to apply for loans up to $2 million if they’re eligible. Others can also receive within three days cash of up to $10,000 for vital business obligations.
The Minnesota Business Finance Corporation is a certified development company. This means it works along with conventional financial companies and lenders in assisting with securing funds for small businesses.
To earn a business loan from the Minnesota Business Finance Corporation, there are some steps to be followed. You go through the process of getting your loan plan evaluated and analyzed. The decision for your eligibility is concluded within a few days of submitting your application. The loans typically offered are the 504 Loans that provide long-term financing for small businesses.
The SBA 504 loan is used to finance the acquiring or purchasing of fixed assets, real estate, and equipment. To issue the loan, the bank, the SBA-approved certified development company (which in this case is the Minnesota Business Finance Corporation), and the loan borrower are involved in the process.
The general 504 loan amount ranges up to $5 million with an interest rate of about 5% to 6% for the CDC portion. The eligibility of this loan depends on what the loan borrower wants to acquire. It could be major fixed assets like building, land, machinery, and equipment. This is why it’s equated to SBA commercial real estate loans.
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.