Thursday, December 19, 2013

Free Money for Minnesota Entrepreneurs?!

For avid readers of entreVIEW (and who isn’t?), the new Angel Loan Program launched by State of Minnesota Department of Employment and Economic Development (DEED) isn’t completely new news. In fact, my fellow author, Dan Tenenbaum, just recently posted about it here. For those who may have missed that post in the holiday rush or who didn’t pay close attention, we want to repeat: the new Angel Loan Program could be as good as a free lunch!

The program, which will issue interest-free loans of up to $250,000 to eligible Minnesota startup companies, was created to help entrepreneurs with startup costs, working capital, business acquisitions and expansions, franchise financing, and equipment loans.

This Angel Loan Fund Program is available to businesses with fewer than 500 employees and who are certified to participate in Minnesota’s Angel Tax Credit Program. The program provides for 10% of the total amount of equity investment received in the business’ approved funding round. And, only one loan may be issued to each business for the duration of the program. In addition, at least one equity investment must be made by an investor that is both certified by the MN Angel Tax Credit Program and qualified as an Accredited Investor per the U.S. SEC under Rule 501 of Regulation D. The loans have a seven-year term, zero percent interest, and are non-recourse. Here are more details on the application process.

The Angel Loan Fund Program is in addition to the well-known Angel Tax Credit program which we have regularly written about. (Dan, could this be the last post to mention the Angel Tax Credit for 2013?) The Angel Tax Credit Program has distributed over $137 million to startup companies around Minnesota since 2010 and it is certain that the Angel Loan Fund Program will be just as successful.

So, what are you waiting for?! Get your free lunch!

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