The state of Minnesota will financially assist you by partaking in your loan to acquire new automation technology.

The Loan Amount is Up To $500,000.

1% Interest Rate on a 5 to 7-Year Term.

Payments MAY be Deferred 6 to 12 Months

Business Size is Less Than 750 Employees

Business Type Must Be Manufacturing, Distribution, Technology, or Warehousing

Purchasing Requirements

• The Purchase Must Be Machinery, Equipment, or Software that Increases Productivity and Automation.
• The above must not already be purchased (this is not a reimbursement.)
• The facility must be located in Minnesota.

The Loan is Done WITH A Lead Lender such as another Financial Institution

• Lead Lender Financing Must Not Be Closed
• The Lead Lender Must Not Be Able to Cover What is Being Requested from the State
• The Lead Lender Must Agree to Cooperate and Share Information with the DEED
• If the Lead Lender So Chooses, They May Request that the DEED take a subordinate position on collateral.

These Loans are a 1:1 Private Financing Match.

A Qualified Financial Institution Must Front the First Half of the Investment.

The Funds May Not Be Used For Existing Debt

12 USC 5704(e)(7)(A)(i)(II) Loan Restrictions
Funds May Not Be Used For:

• Repaying Delinquent Federal or State Income Taxes unless a Payment Plan is Already in Place With a Relevant Taxing Authority (see SSBCI Policy Guidelines.)
• Repaying Taxes Held in Trust or Escrow
• Reimbursing Owners for Startup Costs
• Purchase Portions of Ownership Interest of any Owner of the Business.
• Refinancing Existing or New Debt as a Result of THIS Project

Business Must Be Located in Greater Minnesota, read as: Not in the Metro.

Excluded Counties: Anoka, Carver, Dakota*, Hennepin*, Ramsey, Scott*, and Washington. If your county is not listed, then you already partially qualify.

* = Cities that are Eligible for the Grant but Located Within Excluded Counties = Cannon Falls, Hanover, New Prague, Northfield, and Rockford.

Must have 150 or FEWER full-time employees company-wide. (32+ hours of work per week is Full-Time.)

The Business Commits to Retaining the Jobs of those Being Trained for a Period of One year Post-Completion of Training.

The Business is an employer in manufacturing or skilled assembly production (Food packaging, metal, composites, medical, aerospace, etc.)

The Job itself must be a permanent, full-time job that pay wages of at least ~120% federal poverty guidelines for a family of four.

As of 2022. ~$33,300 per year ($16.01 per hour, 2080-hour work year, on a 40-hour work, week. )

Business Must Pay a $500 Application Fee, Payable upon Approval.

The Business has Invested in Automation Technology in the past 6 months or plans to invest within the project timeframe.

The Business must prove that its training cannot be met through the MJSP Grant.

Training Must Be a Minimum of Two Jobs for a minimum request of $10,000

Must Intend for Training to Begin within six months of award date. Extensions can be granted at DEED’s discretion.

The application Must Identify the Training to be Provided for each job Category, Projected Costs, Expected Outcomes, and a timeline for the training.

Automation Related to this Project Must Will Not Result in the Dislocation of Workers.

Fiscal Year for 2023 = 07/01/2022 to 06/30/2023.

Training For this Period Must Be Completed By June 30, 2024.

Eligible Training

• Advanced Technical Skill Training
• Industry Specific Equipment including New Automation Systems
• Process/Quality Related Training
• Safety Training
• Maintenance of the Automation Equipment
• Train-The-Trainer
• Other Business-Specific Training Deemed Appropriate by DEED.
• Technical Language Training
• Computer and Technological Skills Training for New Automation Equipment

Ineligible Training

• Company Orientation Type Training
• Pre-Employment Training
• Training Not Directly Related to the Automation Equipment or Technology

Eligibility of Scoring must Reach at Least a Total of 30.

• Training Will Result in Retention of Jobs at Risk (5 points.)
• Business Located in a Designated Geography meeting the Economic Distress Criteria* (5 points)
• Business Size (2-10 Points. The smaller, the more points. 150 full time employees = 2 points, 20 people ~= 10 points.)
• Wage Rates (2-10 Points)
• Wage Increases as a Result of the Training (5 Points)
• Voluntary Benefits Provided at a Value of $2 per hour or more (5 points.)
• Training For People of color, economically disadvantaged people, or people with disabilities. (0-10 points)
• Specific Recruitment/Retention Strategy for People Listed Above (5 points)
• Project Leverages Private Funds (0-10 points)
• Return on State Investment (0-10 Points)
• Training on New Automation Will Result in an Industry Recognized Skill Certification (5-10 Points)
• Training Provided by an Accredited Educational Institution/Training Provider (5 Points)
• Business is Incorporating New Information Technology Solutions (5 Points)

DEED would like reports at the conclusion of the training and at the conclusion of the one-year post-training period.

• The report must contain a narrative overview of the progress made.
• Information on resulting certificates for trainees
• Number of employees trained and retained
• Wage rates and demographics of trainees
• Financial report of projected costs with supporting documentation
• Payroll report for the trainees
• A signed document from each trainee and trainer confirming a training took place.

The one-year post-report will include outcomes of the training, projected growth, business outcomes, and overall program efficacy. Additionally, there are sections allotted for suggestions for improvements to the program.