Explore the loans small business lenders in Minnesota offer.
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Biglaw Investor connects you with small business lenders who can help you expand your business, whether through working capital or via acquisition. A small business loan loan is a great way to grow your business—but it can be hard to know where to start. Our small business lenders offer an experience specially tailored to your goals.
Offered exclusively through Biglaw Investor, we make it incredibly simple to find the best loan for your business needs.
I’m an associate at a firm in Houston and used JD Mortgage thanks to your advice! The experience was great—they were super fast and responsive.” —Mary Kate Raffetto Beck Redden LLP
For a JD Mortgage, I had good luck with IBERIABank. [They] made this process very smooth.” —Clint Cowan Lynn Pinker Hurst & Schwegmann
A true Midwestern state, Minnesota is the home of more than 5.75 million people. While it is noted for its very cold winters and snow, it is also known for some of the most unique landscapes, from rolling prairies and farmlands to deciduous forests. It is also called “The Land of 10,000 Lakes” because there are over 14,000 bodies of water located throughout the state, and each one is at least 10 acres in size. Many people here live in the Minneapolis – St. Paul Metro area, but there are other larger cities as well, including Moorhead, Duluth, Mankato, and St. Cloud. Once a location noted for its settlers and homesteaders, today, it is a modern place to live with a diverse makeup and unique culture.
Minnesota has a strong diversity when it comes to economic operations. While agriculture makes up a significant portion of the state’s economy, it also has a strong industrial and commerce sector. There’s also a large amount of energy production here. On top of all of this, Minnesota is home to a large number of small businesses. As of 2022, there are 534,397 small businesses operating in the state, according to data from the U.S. Small Business Administration. These businesses provide jobs for 1.3 million people in the state. That’s more than 22% of the state’s workforce. These companies generate $57,769,376 in payroll to support those families as well.
The growth of small businesses in the state is thanks, in part, to the availability of small business lenders. There are 5,569 small business loans active in the state, according to the latest three years of data from the Small Business Administration. That’s a total loan volume of $2,893,588,468, with an average loan size of $519,589. These funds contribute to businesses in many ways, including helping with expansion, covering the cost of inventory, supporting marketing campaigns, and often helping seasonal companies hire employees.
Minnesota small business lenders provide access to capital through flexible loan offers. These loans are much like any other type. A company applies for the loan, the lender determines if they are eligible for the funds, and then, after the borrower receives the funds, repayment of the borrowed amount, as well as interest, begins. Small business loans are often available to companies with under 100 employees. These loans are available through a range of lenders, including smaller credit unions and banks, as well as private lenders.
To qualify, small businesses typically need to show they have the financial means to repay the loan. This often is done by providing information about the business’s operations, such as in a business plan. It will outline the ownership and management of the company, the industry, market analysis information, explanations of the products and services the company offers, and a great deal of additional information. This data helps lenders determine if they believe the company is financially healthy enough to lend money to through a loan.
Many Minnesota small business lenders also require a careful look at credit history. This often is from the business itself if it is established. If not, the business owner’s information may be used. Lenders also typically need revenue data to help determine how much to lend based on how much the company can afford to pay each month.
Minnesota small business loans can be used for various goals. They can provide a one-time infusion of cash to help the company to expand, update computer systems, modernize operations, build new products, market to new areas, and much more. Other loans are lines of credit that could be used over a period of time based on the needs of the company. Most often, companies will need to share with the lender what they need the funds for, as that can help the lender determine if the risk is worthwhile.
It is not common for companies to qualify for numerous small business loans. That’s why comparing options and choosing the right type of loan for your specific needs is important. Some of the loan types that are available to Twin Cities or MN business owners include:
Small business owners have plenty of options for business financing, and many start at their local economic development or business development office. Existing businesses who can show they have revenue to meet repayment terms are strongly recommended. Depending on the loan amount and funds providers, you may be able to use sources such as new business grants, community development programs, express loans, assistance programs, financing programs, microloans, or even nonprofit grants.
There are plenty of business resources to help you with your cash flow, and doing your research will help you see all that you are eligible for with a grant or business loan program. If you need more financing options beyond business credit, look into a loan.
| Rank | Bank Name | # of Minnesota Loans | Avergage Interest Rate | Average Loan Size |
|---|---|---|---|---|
| 1 | BankVista | 119 | 5.17% | $682,912 |
| 2 | U.S. Bank | 114 | 6.15% | $145,653 |
| 3 | Ultima Bank Minnesota | 69 | 5.42% | $265,275 |
| 4 | Northeast Entrepreneur Fund | 63 | 5.74% | $98,927 |
| 5 | Bremer Bank | 61 | 4.82% | $673,990 |
| 6 | United Prairie Bank | 61 | 4.13% | $340,852 |
| 7 | 21st Century Bank | 60 | 5.15% | $439,745 |
| 8 | Wells Fargo Bank | 54 | 7.52% | $153,385 |
| 9 | Minnwest Bank | 52 | 5.12% | $807,100 |
| 10 | Village Bank | 52 | 5.47% | $636,612 |
Serving Minnesota, with three locations in Chaska, Mankato, and Sartell, BankVista provides the tools and services its customers need to achieve financial success. BankVista has a number of products available to its customers, including loans, personal banking accounts, business banking accounts, mortgages, and credit cards.
We reached out to BankVista to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
First coming into existence in 1863 as the First National Bank of Cincinnati, U.S. Bank now operates in 26 states across the country. U.S. Bank offers a number of products and services to meet customers’ needs, including small business loans and personal banking solutions, including checking and savings.
We reached out to U.S. Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Started in 1904 in Winger, Minnesota, as Farmers State Bank of Winger, Ultima bank Minnesota was formed to meet the needs of the small farming community. Now with 5 locations in the area to meet its customers’ needs, Ultima Bank Minnesota provides both personal and business banking products.
We reached out to Ultima Bank Minnesota to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Northeast Entrepreneur Fund s a part of GuideStar and serves the community of Duluth, Minnesota, to meet the needs of small businesses and entrepreneurs. Northeast Entrepreneur Fund provides loans for expansion, working capital, and acquisitions, among other items, for up to and even exceeding $750,000.
We reached out to Northeast Entrepreneur Fund to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Bremer Bank was started in 1943 by Otto Bremer in Minnesota. Bremer Bank offers a number of tools and services to help its members achieve their goals financially, including tools for business, agriculture, wealth, and personal banking, with items like loans and insurance available to assist.
We reached out to Bremer Bank to see if there were any advantages to working with them during the SBA loan process. Here is what they told us:
When you’re ready to connect with an experienced SBA loan officer, use our form to quickly match with SBA loan programs based on your specific circumstances.
Build a strong business foundation. To do that, companies need information. Business leaders need skills and training. There are some excellent resources that can provide that information and support.
SCORE is one of the best tools available. There is no charge for using this company’s resources. Yet, the organization, which has an office in Owatonna, offers workshops and training programs from experienced and established business owners and experts. It is even possible to find a local mentor who can help you with decisions and building a strong foundation for your company. This organization helps with startups, companies that are growing, and those that are expanding.
The Small Business Administration in Minnesota is another solid choice for the resources it offers. There is no cost to work with this agency. Its website is packed with resources and tips to help companies to become established or grow. The resources provided are numerous and designed to support the unique needs of small companies that are working to compete, grow, and become profitable.
If you want to find the best small business loans in other states, click on your state below.
Joshua Holt is a lawyer and founder of Biglaw Investor. He spent 10 years practicing private equity mergers & acquisition law for one of the largest law firms in the country. As part of his practice, he advised small and medium sized businesses on matters ranging from business loans to the acquisitions and divestitures of stocks and assets.
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