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Small Business Loans in Minnesota (2021 Update)
Benefits of Small Business Loans in Minnesota
Securing a small business loan in Minnesota is not as complicated and tedious as many business owners and entrepreneurs think. The government of Minnesota has put measures in place to ensure that business owners and entrepreneurs get assistance to kick start their businesses or boost the ones that already exist. The State of Minnesota also provides loans to business start-ups which are interest-free. There is the option to apply for a loan that is interest-free through a new program in the state in case you plan to start a new business while in Minnesota. The program known as Angel Loan Fund is a government project that provides small business loans with zero percent interest.
Business owners and entrepreneurs can use small business loans either as start-up financing and business expansion among other reasons. You must first have a good business place in order to qualify for a small business loan in the lending firms in Minnesota. Your business plan should be realistic and workable. The rest of the process is normally fast, easy, and smooth once the lender sees the potential with your business plan. It is important that you consult with business planning experts who will help you in coming up with an excellent business plan. The next thing that you should do after drafting a good business plan is to look for a reputable lending firm.
There are a number of lending companies with different payment and interest terms in Minnesota. It is important that you choose a lending company that is both reputable and has excellent loan terms. The state of Minnesota has made laws that ensure a lending company gives a grace period to a customer before they start repaying the loan. This allows the business to kick off and start making revenue before it starts paying back. You are sure to secure a small business loan in Minnesota regardless of the kind of business or industry you wish to start.
A good number of individuals and companies have been able to grow and expand their businesses in Minnesota with the help of small business loans. The lending institutions in the State of Minnesota offers customized loan services to individuals since they understand that each business is unique. Starting a business in Minnesota has become an easy and simple affair and lacking start-up financing is not a reason for not starting a business anymore. Some of the best lending banks in Minnesota that offer small business loans to entrepreneurs and business owners include:
- Fidelity Bank
- Signature Bank
- United Bankers Bank
- Venture Bank
- Crown Bank
- Platinum Bank
- First American Bank, N.A.
- North Star Bank
- Security Financial
- Traditional Capital Bank
- Round Bank
- People’s Bank Midwest
Starting or expanding a business in Minnesota has never been easy. You should ensure that you secure a small business loan for your business. The future and potential entrepreneurs should go out of their way and actualize their ideas by applying for a small business loan in Minnesota.
Banks in Minnesota That Offer Small Business Loans
Here are the most highly-rated banks in the state for small business loans:
Western National Bank
A commercial bank founded in 1977, Western National Bank was based in Texas but had since expanded to offer its services to Minnesota as well. In 2014, it was acquired by Frost Bank, another bank based in Texas.
First National bank of Walker
The First National Bank of Walker is founded on Walker, MN and is a full-service bank. Despite its relatively limited service coverage, it still is a great place for small business loans.
Unlike most banks, PrinsBank is heavily focused on providing its banking services to organizations such as local churches, schools, and small businesses.
Prior Lake State Bank
Founded in 1909 in Prior Lake, MN, Prior Lake State Bank is a highly rated choice for small business loans even after its merger with Kleinbank in 2014.s
Stearns Bank National Association
Stearns Bank National Association is a national charter bank that first opened its doors to the public in 1912.
Stearns Bank Upsala National Association
Basin in Upsala, MN, Stearns Bank Upsala National Association is proof of how dedicated Stearns Bank is in supporting local small businesses in the state.
Top Cities in Minnesota and Their Lenders
Minnesota is one of the coldest states in the nation. But this hasn’t deterred people from moving to the area – it’s become an increasingly popular place for younger workers. The small business environment in the area has helped numerous small business owners start successful enterprises. There are a number of large cities in the area that have the needed infrastructure to help you set up a new company – but it’s important that you choose the right one.
In this portion of the article, we’re going to take a look at the top cities for business in the Minnesota region. We’ll also have a look at the best lenders.
Minneapolis is by far the largest city in the state. It connects with neighboring Saint Paul to form the ‘Twin Cities.’ The area is one of the most prosperous economic centers in the Midwest. The only larger economic hub in the region is Chicago. Minneapolis is a relatively affordable place to live if you’re thinking of starting a business in the area. Check out our favorite local lenders below:
Northeast Bank is our top pick for the Minneapolis region. They’re one of the most reputable consumer and business banks in the state, and they specialize in business lending. If you’re looking for a full-service business bank that can lend you money and provide you with banking services, this is a great option.
CMDC Business Financing
CMDC Business Financing is another of our favorite lenders in the Minneapolis region. They deal exclusively with business owners, which makes them specialists at helping companies take their operations to the next level. They offer all types of financing but they specialize in getting you SBA loans for your business.
Saint Paul, Minnesota
As mentioned previously, Saint Paul connect with Minneapolis to form the ‘Twin Cities.’ Saint Paul benefits from the industry that is in Minneapolis, many of its residents work for the same companies. Like Minneapolis, Saint Paul is a great spot to start a new business. Below are our favorite lenders in the area:
Top Line Federal Credit Union
Top Line Federal Credit Union is a highly respected lender in the Saint Paul region. They provide loans to both Twin Cities. We recommend Top Line Federal Credit Union because they have some of the best rates in the industry. They’re especially known for their business lines of credit.
As Minneapolis is attached to Saint Paul, it’s only natural we suggest you use the same top lender in the region. Again, Northeast Bank is a powerful lender that can help provide you with both business lending and business banking services. They have a great reputation throughout the entire state.
Rochester is the healthcare capital of the Midwest. The industry is booming in the area and creates much of the city’s employment. If you’re considering starting a business in the healthcare industry, this is the place to be. Below is our top lender in the area:
Coulee Bank is a regional bank that works with different business owners in Minnesota, Illinois, and the Dakotas. They have a solid reputation for bringing the power of a large lending firm to the Rochester region. They’re a favorite amongst business owners in the area. We recommend them if you think you may need large financing – they also work with small businesses as well.
Duluth is the engineering capital of the state of Minnesota. The area attracts top engineering firms from around the globe. It’s also a very affordable place to live. If you’re thinking of starting a new business in the area, you should definitely use our recommended lender below:
MBFC is a non-profit lender in Duluth that provides great rates to their clients. They’re able to provide SBA loans to different business owners in the area. They’re more than happy to walk you through the entire process if you’re not feeling confident to take it on yourself. We highly recommend them for Duluth business owners.
Bloomington is the retail capital of the state of Minnesota. It’s home to the largest mall in the country – Mall of America. If you’re looking to start a new retail business, this is the place to be. Below is the lender we recommend in the area:
Spectrum Commercial is a relatively new lender that has developed a solid reputation for themselves in recent years. They only provide secured loans, but they have great rates and they’ve done an excellent job of helping a number of different clients in the local Bloomington area.
Brooklyn Park, Minnesota
Brooklyn Park is a small city that is often considered an extension of Minneapolis. The city benefits from the same economic forces as the largest city in the state. If you’d like to start a business in Brooklyn Park, you should use the lender recommended below:
CMDC Commercial Lending
CMDC Commercial Lending is a great option for Brooklyn Park business owners. They were also mentioned previously in this article as they are located in Minneapolis. As Brooklyn Park is a part of the city, it only makes sense you use one of the same top lenders in the area. We like CMDC Commercial Lending because they specialize in helping business clients exclusively. They have a great reputation.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don’t worry as there still may be other alternative lenders willing to work with you.