Wednesday, December 4, 2013

Just When You Thought We Had Nothing Left to Say About MN Angel Tax Credit…

As frequent readers of entreVIEW know, we regularly write about the Minnesota Department of Employment and Economic Development’s (DEED) Angel Tax Credit program. Many of us help clients understand and qualify for the credits.  

Just before Thanksgiving, Karen Wenzel told readers that DEED is now accepting applications for eligibility in 2014. Of course, that doesn't mean that angels can get any credits before January of next year.  Max Bremer told us way back in May that credits had run out for the year.

So what could I possibly have left to write about now?

Just Monday, we hosted a meeting of key constituencies who have an interest in the program, including angels, attorneys and other business leaders, people from DEED and a couple key legislative leaders. In addition to discussing the future of the program (currently set to expire at the end of next year), I also learned about DEED’s new “Angel Loan Fund Program.”

Details about the program can be found on the “Angel Loan Fund” tab on this page. The program, which just officially launched early this week, permits businesses that have previously been certified for the Angel Tax Credit to receive a non-recourse, interest free loan with repayment of principal in a lump sum at the end of a seven-year term.  The loan is limited to the lesser of $250,000 or 10% of new equity capital raised after enrollment in the Loan Program.

For qualified businesses planning to raise additional equity capital, it looks like a great way to obtain “free” money.  OK, it may not be quite as free as the money Serge Vorobyov tossed down on people at the Mall of America on Black Friday, but it still looks like a good deal for eligible businesses.

Is it possible that this is our last entreVIEW post on the Angel Tax Credit for 2013?  You’ll have to keep reading to find out!

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