Governor Walz Announces $33 Million Investment In Minnesota Small Businesses

Governor Walz Announces $33 Million Investment In Minnesota Small Businesses
Second Round of SSBCI Funding to Support 225 Startups and Growing Enterprises Across the State

St. Paul, MN — Governor Tim Walz has announced a $33.3 million investment aimed at supporting 225 emerging and expanding small businesses across Minnesota. This funding marks the second round of support distributed through the State Small Business Credit Initiative (SSBCI)—a federal program designed to stimulate economic growth and entrepreneurial activity in communities nationwide.

Governor Walz made the announcement alongside small business owners from sectors including manufacturing, health care, hospitality, and clean technology—all of whom have benefited from the state’s strategic partnership with the Department of Employment and Economic Development (DEED).

“Growing up in a small town, I saw how small businesses can make main streets come alive,” said Governor Walz. “Small businesses are job creators that fuel innovation and strengthen our communities. Making Minnesota the best state to live means it’s a place where entrepreneurs can put their ideas into action to support a diverse and thriving economy. With this funding, we’ll partner with hundreds of new small businesses to ensure they have the resources they need to get started.”

This round of SSBCI funding is part of Minnesota’s $97 million total allocation through the initiative, which was established under the federal American Rescue Plan Act of 2021. To date, DEED has deployed $29.5 million in SSBCI funds to assist 160 businesses across 44 cities. This latest round is projected to extend support to 225 additional businesses.

“99.7% of businesses in Minnesota are small businesses,” said DEED Commissioner Matt Varilek. “They manufacture essential goods, drive technological breakthroughs, and serve as the economic backbone of our communities. With this initiative, we are reaffirming our commitment to helping them grow and thrive in every corner of the state.”

Programs Funded Through SSBCI

The $33.3 million will be distributed through six DEED-led programs:

• Automation Loan Participation Program – Offers low-interest loans up to $500,000 to businesses in manufacturing, distribution, technology, and warehousing.
• Growth Loan Fund – Provides low-interest loans up to $400,000 for early-stage, innovation-driven businesses raising equity investments.
• Minnesota Loan Guarantee Program – Guarantees loans of up to $800,000 through approved lenders.
• Small Business Loan Participation Program – Enables DEED to co-invest $10,000–$250,000 in loans made by nonprofit and Community Development Financial Institutions (CDFIs).

Additionally, DEED has partnered with the University of Minnesota to manage two venture capital programs:

• Direct Investment Venture Capital – Targets seed-stage and early-stage startup investments.
• Multi-Fund Venture Capital – Supports fund-level investments in sectors such as agtech/foodtech, advanced manufacturing, climate tech, life sciences, software, and broader technology development.

“It’s an honor to demonstrate the University of Minnesota’s breadth of knowledge in early-stage businesses and technology to serve Minnesotans,” said Gregg Goldman, University of Minnesota Executive Vice President for Finance and Operations. “We’re proud to continue supporting innovation and growth through this second phase of SSBCI investments.”

A Local Business Impact

Small business owners across the state have already seen direct benefits from SSBCI funding. Among them is Ghita Worcester, CEO of Hoyo Sambusa, a Minneapolis-based business rooted in Somali culinary tradition.

“Participating in the Automation Loan Participation Program allowed our small team to expand production and focus on sharing a piece of our culture with the Twin Cities,” Worcester said. “It’s also helped us create jobs that provide for families in our community.”

Learn More

Entrepreneurs and small business owners interested in accessing these opportunities can visit DEED’s SSBCI Program page to learn more about eligibility, loan types, and how to connect with approved lending partners.

About SSBCI
The State Small Business Credit Initiative was originally launched under the Small Business Jobs Act of 2010 and reauthorized in 2021 through the American Rescue Plan Act, which allocated $10 billion nationally to bolster state, tribal, and territorial business finance programs.

For additional information, visit the U.S. Department of the Treasury’s SSBCI website.

MinneapoliMedia