Top Small Business Grants for 2025 in Minnesota

Almost all small businesses struggle to find adequate financing. That’s why you need to consider every possible source of funding, and that includes investigating small business grants in Minnesota. Whether you’re a startup, a business looking to expand, or are in any situation where you can use an infusion of cash, a small business grant opportunity may be just the answer.

Minnesota small business grants are different from other financing. They don’t have to be repaid. They don’t take cash out of your own pocket or compromise your ownership of your company. Grants won’t provide all the financing you need, but they can be a significant part of your funding strategy and a game-changer that bridges the gap between what you have and the investment you want to make, which can be crucial when creating a small business.

Grants are out there, but you have to know where to look for them. Here are some guidelines on identifying available small business grants in Minnesota and putting yourself in a position to secure them.

What are small business grants?

A small business grant is a sum of money given to a small enterprise. It’s a gift. It doesn’t have to be repaid, it doesn’t cede any ownership of the company to the donor, and it doesn’t come out of the entrepreneur’s pocket. These grants generally come from a government agency, a foundation, or a large corporation.

In some cases, there are restrictions on how grant money may be used. Some examples: for employee training, to engage in the export market, or to make investments in technology. In other cases, there is a lot of leeway on how the businessperson may use it. They might be allowed to apply it in whatever way they think makes sense for the well-being of the company.

Why, you might wonder, would an institution give away money like this? Often it’s done to encourage specific types of investment. A state that wants to get a jump in technology might authorize a grant to spur innovation. A foundation might want to encourage ecologically sound investment or support groups that have traditionally been undeserved.

Grants are useful any time during the life of a business, but they’re particularly welcome during startup or when the business is looking to expand.

Minnesota state-specific grants

Often, the best place to start looking for grants is right here in Minnesota. The state Department of Employment and Economic Opportunity (DEED) is a good source for all sorts of business development resources, including grants.

There are a number of portals, not necessarily connected with the state, that summarize grant opportunities and present them on a website. Examples are US Grants and Minnesota Grantwatch. Thousands of grants may appear on these sites at any one time, and you can filter to narrow your search. Some require you to create a user ID, and others may charge a fee.

Here are just a few of the grant opportunities Minnesota has to offer.

STEP grants

STEP Grants provide up to $7,500 for Minnesota companies looking to export to foreign markets. There is a list of specific export-related activities that the money may be used for, including participation in trade missions, developing foreign-language websites, and exhibiting at trade shows.

Promise grants

Promise Grants are extended to businesses in underserved communities affected by issues like racial discrimination, civil unrest, limited access to capital, and dwindling or aging population. They may be used for business operations expenses like payroll, rent, utilities, and equipment. The first round of grants is complete, but a new round will open soon.

Click the FAQ tab on their page for more information, or the Contact tab for follow-up questions.

MJSP grants

The Minnesota Jobs Skills Partnership is focused on training and retaining workers and keeping jobs in the State of Minnesota. There are several grants available not only to small businesses but also to educational institutions. An example is the Automation Training Incentive Program, which provides up to $35,000 for companies to train employees in the use of new automation technology.

Grants are given on a first-come, first-serve basis. Application information is available on the program’s web page.

Industry-specific and niche grants

Some Minnesota grants are reserved for businesses in specific industries or in designated regions of the state.

Southern Minnesota Initiative Foundation

SMIF grants are reserved for 20 counties in southern Minnesota. There are grants and other incentive programs available to businesses (and other entities) in areas such as early childhood, literacy, economic development, tourism, arts, and food accessibility.

SMIF grant programs open and close on a regular basis. See the website for a list of grants that are currently available as well as instructions for applying.

Job Training Incentive Program

These grants are available to companies outside the 7-county metropolitan area, and also in the cities of Cannon Falls, Hanover, Rockford, Northfield and New Prague. These grants are up to $200,000 and are for job training for new jobs. You must be adding at least three jobs.

Further details, along with application forms and instructions, are available on the various tabs of the web page.

Federal grants available to Minnesota businesses

These grants are funded by various federal agencies, and there a number than MInnesota business owners can apply for. The U.S. government maintains a website, Grants.gov, with descriptions and links to available grants. It includes a flexible searchable database, tips on applying, and other helpful educational materials.

Here are examples of federal agency grants available in Minnesota.

Small Business Innovation Research (SBIR) & Small Business Technology Transfer (STTR)

These are grants that fund R&D projects for businesses of 500 or fewer employees with the goal of promoting technological innovation. SBIR grants often encourage participation from traditionally underserved businesses. STTR grants frequently support research with military or commercial implications.

The web.gov site provides multiple methods of applying for these grants.

National Institute of Standards and Technology (NIST)

These grants are awarded by an agency of the Department of Commerce. They are aimed at startups doing R&D in technology fields like communications, AI, bioscience, and nanotechnology.

Apply at web.gov.

U.S. Department of Education grants

While most education grants go to schools and other educational entities, some are available for private businesses. They all have different eligibility requirements.

Information can be found on the available grants website as well as web.gov.

Corporate and private foundation grants

Not all grants come from federal and state government agencies. Major corporations as well as private foundations also offer grants. For example, there was a FedEx small business grant available for a number of years. While Federal Express is no longer offering it at present, they invite businesses to review the successes of past winners on their website.

Here are some grants that are available in 2025.

Amber Grants for Women

Amber Grants give at least $30,000 every month to businesses owned by women. There are a number of $10,000 grants, including general grants, start-up grants, and grants for a specific business category that changes every month.

A single application makes you eligible for every monthly grant as well as a $25,000 year-end prize. There are only two questions: Tell us about your business or business idea and Tell us what you would do with the money if awarded a grant. Applicants are encouraged to “speak from the heart” about “what matters to you.”

National Association of the Self-Employed

NASE offers Growth Grants of up to $4,000. These grants are intended to grow a business with steps like hiring employees, expanding marketing, and investing in equipment and software. NASE has given away almost $1 million since 2006.

You must join NASE in order to apply.

Tailor Brands Grant

Tailor Brands offers the Tailor AID Fund, a program designed to help individuals turn a career setback into a fresh start. The fund provides a business kit valued at $1,000, including the essential tools and resources needed to plan, launch, and grow a small business.

To be eligible, applicants must be U.S. citizens and have been laid off within the last 90 days due to AI adoption in their workplace. Proof of the layoff is required, such as a termination notice, confirmation from a manager, or a public announcement of the job reduction.

Successful applicants receive a comprehensive business plan and startup resources, giving them the confidence and support needed to bring their next big idea to life.

Conclusion

We have listed only a few of the thousands of funding opportunities Minnesota businesses might be eligible to apply for. There’s a good chance you’ll find that at least one of these is germane to you and your line of business. If that’s not the case, if none of these seem to fit, don’t quit looking. Use the available resources, including the websites named in this article, to identify other grant opportunities that might be out there just waiting for you to claim them.

There are many grants available to Minnesotans, and they’re going to go to the business people who know about them and submit the best applications. Entrepreneurs all over Minnesota are growing their organizations with grants every day, and there’s no reason you shouldn’t be among them.