Community Partner Talent Tools
Financial & Training Incentive Programs
when it comes to dollars and cents, see how we rate.
A wide variety of financing programs exist for businesses looking to start-up or expand in, or relocate to the St. Cloud area of Minnesota. As the economic development leader for the region, the Greater St. Cloud Development Corporation recognizes that each business’ needs are different and we will assist you in determining program eligibility. For more information, contact us.
Financial Incentive Programs
This is a pure pay for performance program. We have received good reviews on the ease of this program. It is also a risk-free program for the business, locality and state since it only pays a rebate after the jobs have been obtained. Maximum award is $1,000,000. One caveat, if the award exceeds $200,000 prevailing wage requirements will apply. Awards can exceed the cap and be as much as $2,000,000 if 75 jobs created AND $25,000,000 capital investment (building, equipment, etc.)
The state pays (rebates) the following:
- $2000 per year per job created for jobs paying at least $27,172 in cash wages
- $3000 per year per job created for jobs paying at least $36,576 in cash wages
- $4000 per year per job created for jobs paying at least $47,026 in cash wages
- Up to a 7.5 percent rebate for real property improvements for business located in Greater Minnesota
The business must meet the following:
- Obtain local government support for their project via council resolution
- $250,000 for Targeted Populations in real property improvements within one year of becoming a designated Job Creation Fund business
- Create at least 5 new full-time permanent jobs within two years of becoming a Job Creation Fund business while maintaining existing employment numbers
- Pay at least $13.01 in wages and benefits in 2018, adjusted annually based on 110 percent of federal poverty guidelines. The level will change again on Jan. 1, 2019.
- Have other location options outside of Minnesota
- Cause no undue harm to Minnesota business competitors
- Certify that the project would not occur without Job Creation Fund assistance
This program provides municipalities’ funds to loan to a qualifying business. The business and city determine the terms of the loan. A portion of the loan can be forgiven by the city. At least 50 percent of total project costs must be privately financed through owner equity and other lending sources. Projects that receive more than $500,000 are subject to prevailing wage requirements. Maximum term 20 years for real estate and 10 years for machinery/equipment. The city may use proceeds of this fund and repayments as a local revolving loan fund. Maximum amount is $1,000,000 although there have been awards up to $4,000,000 for select projects.
Training Incentive Programs
This program provides grants of up to $200,000 to provide training for new jobs located in Greater Minnesota. Funds can be used for training costs including wages for on-the-job training, curriculum development, equipment, facilities, travel, lodging etc. Businesses are provided a grant of $2 for every $1 spent on training related expenses. To be eligible a business must add at least three new jobs and pay at least the median wage for the county, $16.26 for Benton County, $17.58 for Stearns County and $17.93 for Sherburne County.
Recently DAYTA marketing received $42,000 which will be used later this summer for hiring and training new employees.
This program supports industries in advanced manufacturing, agriculture, health care services and information technology. The program works with employers to change the conversation from “How do we find workers with the skills we need?” to “How do we GIVE workers the skills we need?”
PIPELINE exists to support employers in creating or enhancing a competency based dual-training approach where workers receive a combination of related instruction strategically paired with on-the-job training.
Recently DeZURIK received a PIPELINE grant of $96,000 to provide tuition support for their machinists at the St. Cloud Technical and Community College for the 2018 school year. DeZURIK intends to apply for another grant for the 2019 school year.
This program provides grants of up to $400,000 to provide training for both existing and new employees to businesses who partner with accredited Minnesota educational institutions. Grants are awarded to the educational institution to develop and deliver custom training specific to business needs. A cash or in-kind contribution from the participating business must match the grant funds on at least a one-to-one basis.
Recently Park Industries was awarded $350,000 to partner with St. Cloud State University and St. Cloud Technical and Community College to deliver customized training for all current and new employees. The customized training will allow the company to keep pace with its business expansion and maintain its lead in the industry.
New Flyer was also awarded $350,000 for customized training which will focus on improving processes, procedures, communications and skills. All employees—including 347 of them new—will receive training in Basic Principles of Business Operations; Introduction to Hoshin Kanri (a lean manufacturing approach); Hoshin Kanri Time Management Level 1; and General Electrical Safety. Select employees will receive additional training in High-Voltage Safety and Hoshin Kanri.
If you think your business might benefit from any of these three training incentive program, please contact Gail Cruikshank or Leslie Dingmann at GSDC. We are happy to help explore what might work best for your needs and to work with you to make sure the process for application is as easy as possible.