The Minnesota Department of Employment and Economic Development (DEED) has a variety of resources available for entrepreneurs and job seekers.
Micro Enterprise Grant Funds
Kandiyohi County was awarded a community block grant (CDBG) to develop a work plan to serve low to moderate income entrepreneurs, primarily Latino immigrant community members that are qualified business owners or aspiring owners. There is a large minority population that is very entrepreneurial in nature with a high percentage of families in the low to moderate income category that is targeted with block grant funds. Outreach will be conducted by our partners, the Latino Economic Development Center (LEDC) and the Willmar Area Multicultural Business Center (WAM-BC) with the focus to work with businesses to expand, grow and to create jobs.
The Job Opportunity Building Zone (JOBZ) initiative is Minnesota’s rural economic development stimulus program. The goal of the program is to stimulate economic development activity in rural Minnesota by providing local and state tax exemptions to companies that start up or expand in targeted areas of greater Minnesota. The exemptions begin on the date they sign a business subsidy agreement and last until the program expires on December 31, 2015.
There are 10 job zones comprising more than 29,000 acres in about 325 communities. Each job zone includes acres for primarily manufacturing, value-added or high-paying service businesses.
For qualified businesses, the JOBZ program offers substantial financial benefits in the form of tax savings. Your company could qualify for the following tax exemptions by expanding or locating within one of Minnesota's Job Opportunity Building Zones:
- Corporate franchise tax
- Income tax for operators or investors, including capital gains tax
- Sales tax on goods and services used in the zone, if the goods and services were purchased during the duration of the zone
- Property tax on commercial and industrial improvements, but not on land
- Wind energy production tax
- Employment tax credit for high-paying jobs
Your actual benefits will be determined by the exact nature of your business expansion, as well as its effective date. JOBZ benefits accrue from the date your business qualifies and continue until December 31, 2015, when the JOBZ program is scheduled to expire.
By using the simple JOBZ Tax Benefit Calculator you can generate a confidential estimate of your company’s potential tax savings with the JOBZ program.
Businesses that startup or expand in a zone or relocate from other states or from elsewhere in Minnesota are eligible for the incentives, if they meet certain job and wage goals:
They must increase employment by a minimum of five jobs or 20 percent, whichever is greater, within the first full year of operations in the zone.
- They must pay each employee (including benefits not mandated by law) at a level equal to at least 110 percent of the federal poverty level for a family of four.
A wide variety of businesses may qualify for JOBZ incentives, however, retail development is not eligible.
Qualifying businesses must enter into a formal business subsidy agreement and relocation agreement (if necessary) to receive the incentives and file regular reports with the Minnesota Department of Revenue.
How to Apply
In order to receive JOBZ benefits, companies begin at the community level to submit an application that must be approved by DEED. The application process:
- Contact a JOBZ Subzone Administrator, which in Kandiyohi County, is the EDC (320-235-7370 or 866-665-4556 or firstname.lastname@example.org); the state of Minnesota’s loan officer and contact for Kandiyohi County (Region 6E) is Brad Simenson, 651-259-7428
- Complete the JOBZ Program Application and provide supplemental documentation (Download the JOBZ Program Application)
- The application is evaluated by DEED
Click here to see additional steps, if the project is approved.