Loans that help promote expansion and job creation.
The 1200 Fund loan is provided to companies who otherwise are not able to obtain financial assistance or where profits are not sufficient to attract investors with the overall goal of creating jobs.
This fund is meant to complement other private financing.
Tax Increment Financing
Tax increment financing (TIF) uses the increased property taxes that a new real estate development generates to finance costs of the development. In Minnesota, TIF is used for two basic purposes:
- To induce or cause a development or redevelopment that otherwise would not occur-e.g., to convince a developer to build an office building, retail, industrial, or housing development that otherwise would not be constructed. To do so, the increased property taxes are used to pay for costs (e.g., land acquisition or site preparation) that the developer would normally pay.
- To finance public infrastructure (streets, sewer, water, or parking facilities) that are related to the development. In some cases, the developer would be required to pay for this infrastructure through special assessments or other charges. In other cases, all taxpayers would pay through general city taxes.
Contact DEDA staff to learn more about State managed programs that may match your needs, (218) 730-5310.