This post is part of a series of posts designed to help you acquire a loan for your small business. The following posts cover methods for public financing of your small business
Grants help producers expand their customer base by entering into emerging markets for their products or commodities and ensure that a greater portion of the revenues derived from the value-added activity is available to the producer.
Independent producers, farmer-owned cooperatives, agricultural producer groups and majority- controlled producer-based groups are eligible to apply. For reserved funds competition additional eligibility requirements are: beginning farmer or socially disadvantaged farmer or rancher, mid- tier value chain/local or regional supply network or possible advantages to HTVC projects.
Five categories are considered value-added under this program.
Planning grants can be awarded for such activities as conducting feasibility analyses, developing business and marketing plans. Working Capital grants may be used for expenses associated with operations while the venture develops cash flow. Some things that grant funds cannot be used for:
The maximum allowable grant amount is $100,000 for planning grants and $300,000 for working capital. Grant recipients must provide 1-to-1 matching funds. Projects must be completed within two years.
CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.