Minnesota Job Creation Fund
Minnesota Department of Employment and Economic Development (DEED)
Varies — typically $500K–$3M
Minnesota's flagship discretionary jobs grant
Minnesota's primary economic development incentive for large job-creating projects — provides a combination of cash grants (business subsidy) and property tax exemptions to businesses that meet minimum thresholds of 10 net new full-time jobs, $500,000 in capital investment, and wages at or above the DEED-set floor (currently $16.50/hour in wages + benefits, adjusted annually). The program is discretionary and performance-based: grants are structured as forgivable loans disbursed after verified job creation milestones. Recapture applies if commitments are not met. Large capital-intensive projects (significant machinery and equipment investment alongside job creation) may be eligible for a combined maximum grant of $2,000,000.
- Funding type
- Grant
- Level
- State
- Amount range
- $100,000 – $3,000,000
- Realistic amount
- A 50-job project at $65K average wage with $5M capital investment in outstate Minnesota might receive $300,000–$600,000…
- Deadline
- Rolling — no annual application cycle. Applications are evaluated on a deal-by-deal basis through DEED's Business Development division.
- Status
- active
- States
- MN
- Payment model
- milestone
Who qualifies
- Create minimum 10 net new full-time jobs (35+ hours/week with benefits) within 2 years of agreement execution
- Minimum $500,000 capital investment in qualifying Minnesota business assets
- New jobs must pay at least $16.50/hour in wages + benefits (current program floor, adjusted annually by DEED). This floor may be higher than 110% of county average in some rural counties — DEED applies whichever threshold is higher.
- Business must be subject to Minnesota Business Subsidy Law disclosure requirements
- Company must demonstrate economic need for the subsidy (the 'but for' case that absent the grant, the project would not occur or would be smaller in MN)
- A public hearing is required before the grant agreement is finalized (Minnesota Business Subsidy Act, §116J.993 et seq.)
- Project must not have commenced before DEED approval (pre-commencement timing rule)
Hard requirements
- Must be incorporated
- Minimum project size: $500,000
What it covers
Eligible expenses
- Cash grant proceeds may be used for any business purpose (no restriction — it is a business subsidy, not a cost-reimbursement grant)
- Property tax exemption applies to new real property and personal property investments at the project site
- Qualifying new full-time jobs at or above the DEED wage floor ($16.50/hr + benefits) are the metric driving grant size
Ineligible expenses
- Retail trade operations (grocery stores, restaurants, most consumer-facing businesses — ineligible under MN Business Subsidy Law)
- Jobs transferred from another Minnesota location do not count as net new
- Part-time positions (fewer than 35 hours/week) do not count toward the 10-job minimum
- Project costs incurred before DEED approval
- Businesses in the sports facilities, gambling, or tobacco industries
How to apply
-
1
Contact DEED business development staff early
Reach out to DEED's Business and Community Development division during site evaluation. Bring project details: job projections, average wages, capital investment plan, and proposed county. DEED can indicate likely award range before a formal application.
~10 hrs
-
2
Submit Job Creation Fund application to DEED
Complete the DEED application with job schedule, wage documentation (showing wages at or above the $16.50/hr DEED floor), capital investment plan, and 'but for' justification (why MN subsidy is needed for the project to proceed as planned).
~10 hrs
-
3
DEED structures grant offer and conducts public hearing
DEED evaluates application and structures grant amount and property tax exemption terms. Minnesota Business Subsidy Law requires a public hearing held by the local government (city or county) before the grant agreement is executed. Allow 4–8 weeks for this process.
~10 hrs
-
4
Execute grant agreement with DEED and local government
Sign the Job Creation Fund grant agreement with DEED and (for property tax component) the local government. Agreement specifies job and wage commitments, capital investment milestones, payment schedule, and recapture provisions.
~10 hrs
-
5
Create jobs and investments; receive disbursements upon verification
DEED disburses grant funds as verified job creation and investment milestones are met (typically at 1-year and 2-year marks). Annual compliance reporting required. Recapture provisions apply if commitments are not met.
~10 hrs
Budget 4–8 weeks for the mandatory public hearing under Minnesota Business Subsidy Law — it is not optional and often surprises first-time applicants. Greater Minnesota (outstate) projects get much stronger offers than metro projects for equivalent job counts.
Deadline & timing
Apply before project commencement. DEED must review and approve before significant site investment or public announcement. Minnesota Business Subsidy Law requires a public hearing before most DEED grants above $25,000 are finalized — allow 4–8 weeks for this process.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.