Financing

Services: Incentive and Financial Resource Programs

Contact: Catalina Valencia, Director- Office of Business Development

Address: 1st National Bank Building 332 Minnesota Street, Suite E200, St. Paul, MN 55101-1351

Phone: 651.259.7493

Email: cataline.valencia@state.mn.us

Description:

The Job Creation Fund (JCF) program is DEED’s newest program to encourage job creation and capital investment in

new or expanding businesses. The program provides job creation awards of up to $500,000 and capital investment
rebates of up to $500,000 for qualifying businesses.

Eligibility
Businesses may apply through a local government where their new or expanding business will be located and must be primarily engaged in manufacturing, warehousing, distribution, IT, or other eligible activities. At minimum, a business must:

  • Invest $500,000 in real property improvements within one year of designation as a Job Creation Fund Business; and,
  • Create 10 new full‐time, permanent jobs within two years of designation as a Job Creation Fund Business; and
  • Obtain a resolution of support from the local government where the business will be located.

Benefits
A business approved and designated by DEED for the program may request benefits after entering into a business subsidy agreement with DEED, making an investment of at least $500,000 within one year, and having at least 10 new permanent full‐time jobs in place for one year.

Benefits include:

  • Up to 7.5% rebate on capital investment in real property improvements in Greater Minnesota
  • Up to 5% rebate on capital investment in real property improvements the Twin Cities Metro
  • Between $1,000‐$3,000 per new permanent full‐time job per year, based on cash wages paid
  • All new jobs must pay at least $12.61 in total compensation
  • All wage and compensation levels are adjusted annually

Provisions for Large Projects
Businesses making a capital investment of more than $25 million may be eligible for these JCF awards:

  • Up to $2 million ($1 million in capital investment rebates and $1 million in job creation awards) if the business creates at least 200 full‐time permanent jobs.
  • Up to $1 million in capital investment rebates for projects that will retain at least 75 full‐time permanent jobs in Greater Minnesota.

Although equipment may be counted toward large project eligibility, the capital investment rebate only applies to the
expenditures related to real estate – land and building – improvements.

Application materials, frequently asked quesitons and other informatiion can be found at http://mn.gov/deed/business.

Minnesota Job Creation Fund (State) serves the Northland, Arrowhead, Duluth MN Superior WI MSA, Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis county areas.