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Are you looking for Minnesota’s best business loans & startup financing companies? For your small business in the North Star State, many banks, credit unions, and unconventional lenders are offering different loan types. After all, more than 534,000 businesses operate in Minnesota right now. These firms employ more than 22% of the North Star State’s total workforce.

That’s why many different lenders offer different loan types to these small businesses today.

Understand the unique features and benefits of different loan types to empower your business. That’s how you choose the best lender for your business. Also, look into no-credit equipment financing options if you can’t get a business loan via traditional means.

Consider these 11 business loans & startup financing options in Minnesota to get started. Check our reviews of these lenders to decide which one’s the best option for you:

1. Swoop Funding

Swoop Funding is every Minnesota-based small company’s top startup financing option. It will offer entrepreneurs a range of funding solutions to meet their needs. You can access many loan types, including traditional term loans and innovative financing options with a simplified funding process. At Swoop Funding, you can get $5k to $500k as a small business. Moreover, you have to have a credit score of 600+ with the company’s annual revenue being $50k (at least). Even if it’s been 6 months since you started this business, Swoop will consider your loan application!

2. US Bank

Based in Minnesota, this bank can help local businesses get the much-needed financial support to pursue their entrepreneurial dreams. The interest rate is high (6.15%) and the average loan amount is $145k. However, the credibility and prestige of this bank make it deserving of the #2 spot on our list. If you need between $5,000 & $250,000, US Bank offers easy access to funding for small businesses. 

3. Bremer Bank

This is yet another bank with a basis in Minnesota. In fact, Bremer Bank was named the Lender of the Year in the North Star State in 2022. The average interest rate here is a little over 4.80%. Also, the average loan amount is around $675,000. That’s why we have placed Bremer as the #3 lender on our list for Minnesota-based businesses.

4. United Prairie Bank

This lender gives you an average interest rate of 4.13% along with $340,000 being the average loan amount. At the United Prairie Bank, you’ll find a dedicated staff with a personalized approach toward serving clients. You can apply for real estate loans, lines of credit, SBA loans, and ample financing for equipment purchases, making this bank an ideal lender for Minnesota-based small businesses.

5. Minnwest Bank

Minnwest Bank gives you an average loan amount of over $800k. Also, the average interest rate here is 5.12%. This lender has $1.6 million combined in assets. Also, leases range from $10k to $1 million based on your startup’s financial eligibility.

6. 21st Century Bank

The average interest rate at this bank is 5.15%; however, the average payout amount is around $440k. If you want to invest in commercial property, then the 21st Century Bank will help you in Minnesota with its generous financing services. SBA 7(a) loans are available for up to $5 million based on the creditworthiness of your business. Unlike many other lenders, they favor business owners who want to invest in non-owner-occupied real estate as well.

7. Ultima Bank Minnesota

If you need agricultural loans, then you should get in touch with Ultima Bank Minnesota. You’ll get an average loan amount of $265,000 while the average interest rate here is 5.42%. You can get a loan for the following purposes:

• Equipment & Machinery
• Livestock
• Operating Lines of Credit
• Real Estate

Check out the best forestry equipment financing & loan options available in the United States.

8. Dakota Business Lending

This lender has been in business for the past 20 years, offering Minnesota-based companies generous loans. You get up to 90% financing with the term options ranging from 10 to 25 years. Also, a minimum 10% down payment is the requirement here. Dakota Business Lending gives you a fixed & competitive interest rate so make sure that the cost of taking out this loan doesn’t overburden you. You can find the services of this lender in Minnesota’s Ottertail, Polk, Becker, Clay, and Wilkin Counties.

9. Village Bank

At Village Bank, you can get a loan of $636k on average. Also, the interest rate here is 5.47%. So, you should get in touch with this bank or, if possible, visit its main branch in Virginia. That’s how you can fund your unique business idea.

10. Northeast Entrepreneur Fund

This lender will offer you multiple types of loans including SBA Microloans, SBA 7(a), and small business loans ranging from $1,000 to $750,000. Every loan is paired with strategic one-on-one business advising at no additional cost. The average interest rate here is 5.74%. Also, the loan amount is around $100,000. That’s why we’ve placed it at #10 on our list.

11. BankVista

Don’t forget about BankVista which is yet another amazing option for local businesses that want to get funded. It has a normal average interest rate (5.17%) and the average loan amount is also around $682,000. This bank earned the title of the SBA Lender of the Year in Minnesota between 2016 and 2024.

Minnesota Government Resources

Check out these government resources about business grants/funding and startup financing options in Minnesota:

• St. Louis Park Financing Resources
• Startup and Small Business Resources in Minnesota
• Golden Valley Business Resources (Minneapolis Suburbs)
• Blaine Incentives & Financing
• City of Northfield Public Financing

Top Cities in Minnesota for Business Loans

Curious to know which cities, townships, municipalities, or census-designated places (CDPs) in the state of Minnesota are the best for business loans & startup financing? If you live in any of these 30 cities, then you can easily access SBA loans or other nontraditional financing means to embark on your entrepreneurial journey:

1. Minneapolis
2. Saint Paul
3. Rochester
4. Duluth
5. Bloomington
6. Brooklyn Park
7. Plymouth
8. Eagan
9. Woodbury
10. Maple Grove
11. Saint Cloud
12. Burnsville
13. Moorhead
14. Apple Valley
15. Lakeville
16. Edina
17. Blaine
18. Coon Rapids
19. Shakopee
20. Prior Lake
21. Golden Valley
22. Minnetonka
23. Roseville
24. Saint Louis Park
25. Albert Lea
26. Faribault
27. Hastings
28. New Hope
29. Northfield
30. Winona

Conclusion

Whether you’re a startup owner or founded a well-established business years ago, you have to choose the right financing partner and lender. That’s how you keep your business vessel afloat and key commercial operations running in the North Star State in this economy.

Now, choose a lender that offers you flexible loan terms and interest rates. Check their online reputation, customer service, interest rates, and other factors. If nothing makes sense, get in touch with Sophisticated Investor to understand how to get your entrepreneurial dreams funded quickly. That’s how you can take your business to new heights of success.