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 cover every cost of starting a Minnesota LLC, 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 starting a business in Minnesota.
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?
Small business grants are sums of money given to a small enterprise. They’re a gift. They don’t have to be repaid, they don’t cede any ownership of the company to the donor, and they don’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 underserved.
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 Development (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.
Note that STEP is a reimbursement grant: it reimburses part of eligible export costs. Check DEED for the current match rules and application window.
Promise grants
The Minnesota PROMISE Act Grant Program was created by the state legislature in 2023 to support small businesses and nonprofits in communities adversely affected by structural racial discrimination, civil unrest, limited access to capital, population loss, or lack of regional economic diversification. Over $94 million has been allocated, distributed through six regional partner organizations statewide.
Grant amounts are tiered based on prior-year gross annual revenue: businesses with revenue of $100,000 or less receive $10,000; those with revenue between $100,001 and $350,000 receive $25,000; and those with revenue between $350,001 and $750,000 receive $50,000. Funds can be used for working capital, payroll, rent or mortgage payments, utilities, equipment, and other regular operating expenses.
Round 2 is currently open. Businesses in the Twin Cities metro area can apply on a rolling basis until funds are allocated. Greater Minnesota partners open their own rounds, and some are currently closed. Businesses outside the metro should contact their regional partner organization to check the status of applications in their area. Partners include the Northland Foundation (northeast Minnesota), Northwest Minnesota Foundation, West Central Initiative Foundation, Southwest Initiative Foundation, Southern Minnesota Initiative Foundation, and Initiative Foundation (central Minnesota).
MJSP grants
The Minnesota Jobs Skills Partnership is focused on training and retaining workers and keeping jobs in the State of Minnesota. MJSP Partnership grants go to Minnesota educational institutions that train workers for partner businesses, and some MJSP programs fund businesses directly. 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. It is open to Greater Minnesota manufacturers and skilled assembly businesses with 150 or fewer employees, and no match is required.
Application information is available on the program’s web page.
Employer Reasonable Accommodation Fund (ERAF)
The Employer Reasonable Accommodation Fund is a Minnesota-specific grant program administered by DEED that reimburses employers for the cost of providing reasonable accommodations to employees or job applicants with disabilities. The program is designed to reduce the financial barrier that can discourage employers, especially small businesses, from hiring or retaining workers with disabilities.
Eligible accommodations include ergonomic or adaptive equipment, workstation modifications, assistive technology, sign language or other communication interpreters, job coaches, and other modifications that allow an employee with a disability to perform the essential functions of their job. ERAF reimburses one-time accommodations from $250 up to $15,000 per employee, with a cap of $30,000 per employer per fiscal year.
To be eligible, your business must be based in Minnesota, with 500 or fewer employees and gross annual revenue of $5 million or less. The accommodation must be for a current employee or a job applicant, and it must be related to a documented disability.
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 in Greater Minnesota, outside the 7-county metropolitan area. These grants are up to $200,000 and are for job training for new jobs. You must be adding at least three jobs, and a 50% match is required.
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 are a number that 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 projects require a partnership with a research institution, such as a university.
The SBIR.gov site provides multiple methods of applying for these grants.
Note: The SBIR and STTR programs lapsed on September 30, 2025, after Congress missed the reauthorization deadline. Both programs were reauthorized on April 13, 2026, and now run through September 30, 2031.
National Institute of Standards and Technology (NIST)
These grants are awarded by an agency of the Department of Commerce. NIST funds research and technology programs; check its funding opportunities page for open notices.
Apply at Grants.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 Grants.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.
Here are some grants that are available in 2026.
Amber Grants for Women
Amber Grants award $15,000 monthly grants to women-owned businesses, including general grants, start-up grants, and grants for a specific business category that changes every month. Three $75,000 year-end grants are also awarded each year.
A single application makes you eligible for the monthly and year-end grants. 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 more than $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.