Small Business FAQs

What services does the Minnesota SBDC offer? ( Top )
The Minnesota SBDC offers one-on-one business management counseling to existing and prospective small business owners and managers; training on business topics; loan packaging, and access to business information. Services are offered through regional centers located throughout Minnesota.

What can I expect when I call an SBDC for assistance? ( Top )
When you first call an SBDC for assistance, you will be asked several questions to determine the nature of assistance you need. In some cases, your questions will be answered on the spot, or information can be mailed to you. If you do not yet have a business plan, and want counseling assistance, you most likely will be encouraged to attend one of our modest-cost business start-up seminars before a counselor is assigned. After you have prepared a draft business plan, an appointment will be scheduled with a counselor who will provide further assistance.

Who qualifies for Minnesota SBDC counseling services? ( Top )
SBDC counseling is available to any for-profit Minnesota company that meets the U.S. Small Business Administration's definition of a 'small' business, and any individual planning to start a for-profit business in Minnesota. Approximately 98 percent of Minnesota's businesses meet the SBA definition of a 'small' business. Non-profit organizations, schools, and governmental entities are not eligible for SBDC counseling assistance, although they are welcome to attend SBDC training seminars.

Does the Minnesota SBDC help existing businesses, or is it just for start-ups? ( Top )
Minnesota SBDCs serve a broad range of businesses, ranging from those who are thinking about starting a business, to very early-stage companies, to firms that have been in business many years. Approximately three quarters of SBDC clients are already in business at the time they approach the SBDC for assistance.

What does SBDC counseling cost? ( Top )
There is no charge to the client for SBDC counseling. Counseling is defined as individual advice or guidance concerning the formation, management, financing and operation of a small business enterprise. There may be a charge to recover out-of-pocket costs incurred by the SBDC such as copier charges, long-distance telephone charges, and supplies purchased specifically for the client's project. Fees may also be charged for specialized non-counseling services such as primary market research.

Does the Minnesota SBDC offer loans or grants? ( Top )
No. SBDC counselors can, however, help clients prepare applications for business loans. In the limited situations where grants may be available, SBDC counselors can also help clients prepare those applications. Assistance with preparing these applications is considered counseling, and is provided at no charge to the client.

Will a Minnesota SBDC counselor write my business plan for me? ( Top )
The business plan is a critical tool for any business. Experience indicates that business owners who prepare their own business plans understand them better and utilize them to strengthen their business. For this reason, SBDC counselors do not write business plans for their clients. Counselors will provide guidance in writing the plan, and can help fine-tune it. In addition, several SBDCs offer seminars on writing business plans. Counselors can suggest printed materials, software programs and web-based tools that provide sample business plan formats.

Is there a limit on how much counseling I can receive? ( Top )
The amount of counseling a client receives may be limited by available resources.

Why are SBDCs located at colleges and universities? ( Top )
The federal legislation establishing the SBDC program requires SBDC services to be delivered primarily by colleges and universities. The intent of the legislation was to make the knowledge, research and technology transfer occurring in institutions of higher education available to the small business community.

Who are Minnesota SBDC counselors? What qualifications do they have? ( Top )
SBDC business counselors are well-qualified to assist their clients. Most SBDC counselors have significant experience in the private sector, and many have extensive management and financial consulting backgrounds. The SBDC also utilizes qualified faculty, students and volunteers to deliver services at many locations. SBDC counselors are highly regarded by clients for their business skills and expertise.

Is my information kept confidential? ( Top )
Client-supplied information is not disclosed to persons outside the SBDC program, unless the client agrees or disclosure is required by law or a court order. SBDC counselors and other SBDC personnel sign a Code of Ethics by which they agree not to disclose such information to third parties unless required to do so by law or court order. SBDC counselors can explain the requirements of the Minnesota Data Practices Act, which governs use and disclosure of client information collected by the SBDC.

Where can I get a list of SBDC training programs? ( Top )
Information on SBDC training programs can be accessed by visiting the SBDC workshops and seminars web page or by contacting the SBDC nearest you.

Is the SBDC the same as the SBA? ( Top )
The Minnesota Small Business Development Center program is funded in part by a cooperative agreement with the U.S. Small Business Administration, but it is not a part of that agency. Other funding partners of the SBDC network include the Minnesota Department of Employment and Economic Development and the colleges, universities and other organizations where SBDCs are located.

My business is outside Minnesota. Are there SBDCs in other states? ( Top )
There are Small Business Development Center offices in all states and U.S. territories. See the list of SBDC programs in other states and territories.

Start-Up Considerations

I want to start a small business. Where do I begin? ( Top )
If you do not already have a copy, order the free book, A Guide to Starting a Business in Minnesota. This comprehensive guide, prepared by the Small Business Assistance Office of the Minnesota Department of Employment and Economic Development, addresses topics like choosing the form of business organization, financing the business, tax issues, issues for employers, intellectual property, and many others. The Guide also contains a comprehensive listing of resources for small companies, and a listing of all state-required licenses and permits. See our Publications listing for an online order form, or call the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

Another important first step is to prepare a business plan. The business plan describes the business � the product or service, the market, management and other human resources, and financing needs. A well-prepared business plan helps the prospective owner assess the feasibility of the venture: is there a market for the product or service, and do the potential rewards justify the investment. As the business matures, the business plan serves as a sales tool for raising capital and a management tool for monitoring the growth of the business and charting future directions.

Where can I get help with preparing my business plan? ( Top )
There are many tools available to help you prepare a business plan. The business reference section of your local public library will have books and other materials that describe the business planning process, and contain sample formats. The business reference librarian can also direct you to materials that will help you research and understand the potential market for your product or service.

There are also many online resources, such as the U.S. Small Business Administration's Library & Resources that provide workbooks and checklists to help you develop your business plan.

The Small Business Development Centers, SCORE, and other organizations offer seminars at modest cost on starting a business and preparing a business plan.

If you have prepared a draft business plan, you can contact the SBDC nearest you for assistance in reviewing the plan and answering your questions.

What should I know about accounting and bookkeeping? ( Top )
Keeping adequate books and records is important for a number of reasons:

To monitor how well the business is doing
To substantiate tax returns
To support requests for financing
To support your claims about the business' profitability, should you wish to sell it

You can use commercial computer software to perform most bookkeeping and accounting tasks. It is critically important, however, that you understand the financial statements that are produced, and the numbers behind them. The three basic financial statements are the balance sheet, which is a record of assets, liabilities and capital; the income statement (also called profit and loss statement), which is a summary of your earnings and expenses over a given period of time; and the cash flow statement, which is a summary of actual cash flows in and out of the business from operations, financing and investment.

Consult with your accountant or a Small Business Development Center counselor for help in setting up your books and records, and understanding your financial statements and financial accounting system. The state's technical and community colleges and universities offer seminars and extended courses on accounting, record keeping and financial analysis. If you are not familiar with these issues, it may be advisable to take one of these seminars or classes.

How do I find suppliers? ( Top )
There are a number of readily-available resources to help you find suppliers. If you know the manufacturer of the product line, a letter or phone call or visit to the manufacturer's website will get you in contact with the local wholesaler or distributor. The business reference librarian at your local public library can direct you to sources like the Thomas Register, which lists manufacturers by categories and geographic area. Most libraries also have directories of manufacturers for various states. For some product lines, trade shows are good ways to contact suppliers and compare competing products.

I want to operate a home-based business. Are there special considerations? ( Top )
The same considerations that apply to any business also apply to a home-based business. Careful consideration should be given to whether the home is an appropriate location, given the demands of the business and personal or family needs. In addition, individuals operating a home-based business should check with the unit of local government where they live to determine whether local zoning ordinances allow operating the business in a residential area. Individuals who rent or lease their residence should check their lease agreement to determine whether they can conduct a business from the rented or leased premises. Residential insurance policies typically do not cover losses from business operations, so business insurance coverage should be discussed with your insurance agent. Special tax considerations may apply to businesses operated out of the home. Your tax advisor can help you determine how to apply these considerations to your situation.

I'm thinking of buying a business. How do I know if it's priced right? ( Top )
There are a number of ways to value a business. The most appropriate method depends on the facts and circumstances relevant to the business and particular transaction. For example, the valuation of many service businesses depends heavily on relationships between management and customers, whereas the valuation of many manufacturing companies takes into consideration the value of inventory and equipment. It is advisable to seek the opinion of a knowledgeable business appraiser for help in pricing a business. Organizations such as the Institute of Business Appraisers and the American Society of Appraisers maintain online lists of members and information about members' credentials. Professional advisors such as attorneys or accountants can also provide referrals to competent business appraisers.

While Small Business Development Center counselors can provide advice on the business valuation process and factors in valuing a proposed business opportunity, counselors do not perform business valuations as part of SBDC counseling services.

I'm thinking of buying a franchise. Where can I get more information? ( Top )
A franchise is a method of marketing and distributing goods and services. A franchise is broadly defined as a contract or agreement between two or more persons by which the franchisor (seller), for a fee, gives the franchisee (buyer) the right to engage in the business of offering or distributing goods or services using the franchisor's trade name, trademark, service mark, logotype, advertising or other commercial symbol. Both the franchisor and the franchisee must have a community of interest in the marketing of the goods or services.

Franchisors must register the proposed franchise with the Minnesota Department of Commerce. Applications must comply with the Uniform Franchise Offering Circular (UFOC) guidelines of the North American Securities Administrators Association (NASAA). These guidelines prescribe disclosures that a franchisor must make available to prospective franchisees, and require that franchisors provide prospective franchisees with audited financial statements and copies of proposed contracts and agreements pertaining to the proposed franchise relationship. Information on whether a franchise is registered with the Minnesota Department of Commerce may be obtained at the Department's website or by writing the Minnesota Department of Commerce, 85 7th Place East, Suite 500, St. Paul, MN 55101, telephone 651-296-2488 (Twin Cities calling area) or 1-800-657-3602 (toll free outside the Twin Cities calling area).

Franchises are regulated at the federal level by the Federal Trade Commission (FTC). The FTC publishes a number of informative booklets and other materials such as A Consumer's Guide to Buying a Franchise, Guide to the FTC Franchise Rule, Franchise and Business Opportunities (discussing buyers' rights and complaint procedures), Avoiding Vending Machine and Display Rack Scams, and others. These publications are available online or by calling 1-877-382-4357 (toll free) or by writing the Federal Trade Commission Consumer Response Center, 600 Pennsylvania, NW, Room H-130, Washington, DC 20580-0001.

The U.S. Small Business Administration's online Small Business Planner offers franchise information in the section Buy a Franchise. Also available is the publication Is Franchising for Me? [PDF] for download.

Another valuable publication is An Introduction to Franchising, published by the Small Business Assistance Office of the Minnesota Department of Employment and Economic Development, in collaboration with the law firm of Briggs and Morgan P.A. This publication is available for download or viewing in .pdf format from the MN SBAO or DEED website.

Legal Considerations

What legal form of business organization should I choose? ( Top )
Minnesota entrepreneurs have a number of choices of form of legal organization. The most appropriate form depends on the needs and goals of the business owner(s). Specific advice on the most appropriate form of organization for your business should be obtained from your legal and tax advisors. A general discussion of the forms of organization available in Minnesota, and the tax and non-tax considerations of each is found in A Guide to Starting a Business in Minnesota, which may be viewed, downloaded or ordered; online or by calling the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

The following forms of organization are available to most Minnesota businesses:

Sole proprietorship. The business is owned and controlled by one person. This person alone receives the profits and bears the losses from the business, and this person alone is responsible for the debts and obligations of the business.

General Partnership. The business is owned by two or more persons who associate to carry on the business as a partnership. Partnerships have specific attributes, which are defined by statute. All partners in a general partnership share equally in the right, and responsibility, to manage the business, and each partner is responsible for all the debts and obligations of the business. Distribution of profits and losses, allocation of management responsibilities, and other issues affecting the partnership usually are defined in a written partnership agreement.

Limited Liability Partnership. A general partnership may register with the Secretary of State as a limited liability partnership (LLP). In a LLP, the personal assets of the partners are shielded against liabilities incurred by the partnership in tort or contract situations. LLPs are relatively new entities in Minnesota, and certain tax and other aspects are not fully developed or understood.

Limited Partnership. A limited partnership is a type of partnership in which limited partners share in the partnership's liability only up to the amount of their investment in the limited partnership. A limited partnership must have at least one general partner and one limited partner. The general partner is responsible for day-to-day management of the limited partnership, and is responsible for the debts and obligations of the limited partnership. The limited partner, in exchange for limited liability, is usually not involved in the day-to-day management and control of the business. A limited partnership may register with the Secretary of State as a Limited Liability Limited Partnership.

Corporation. A corporation is a separate legal entity. It is owned by one or more shareholders. The shareholders elect a board of directors which is responsible for management and control of the corporation. Because the corporation is a separate legal entity, it is responsible for the debts and obligations of the business. In most cases, shareholders are insulated from claims against the corporation. An "S corporation" is a corporation that elects to be treated under Subchapter S of the Internal Revenue Code. In most cases, S corporation shareholders, rather than the corporation itself, are taxed on the profits of the corporation. In contrast, a "C corporation" (taxed under Subchapter C of the Internal Revenue Code) is taxed on the profits of the corporation, and any dividends paid to shareholders from after-tax profits are taxed again at the shareholder level.

Limited Liability Company. A limited liability company (LLC) is a form of business organization that is designed to combine the tax treatment of a sole proprietorship or partnership with the limited liability characteristics of a corporation. A limited liability company may have one or more members.

With the exception of sole proprietorships, all of the above forms of organization are established by statute. Specific forms must be filed with the Secretary of State, and in most cases the business organization must obtain federal and state tax ID numbers. There also may be constraints on changing from one form of organization to another. For these reasons, decisions regarding the form of organization or changing the form of organization should be made with the assistance of knowledgeable legal counsel.

What paperwork must I file to form my business? ( Top )
The specific legal documents that must be filed to form a business depend on the type of business organization chosen by the entrepreneur. Forms are available from the Minnesota Secretary of State's Office, Business Services Public Counter, 60 Empire Drive, St. Paul, MN 55103, telephone 651-296-2803 (Twin Cities calling area) or 1-877-551-6767 (outside the Twin Cities calling area). Forms also may be downloaded from the Secretary of State website.

The most common requirements for forming a business organization are:

A Certificate of Assumed Name must be filed if the name of the business is different than the full name of the owner(s) of the business. This requirement applies to all forms of business organization.

Partnerships may file certain elective forms specifying limitations or expansions on partners' authority. If these forms are not filed, the default provisions of the Minnesota Business Corporation law apply to the partnership. Consult with your legal advisor concerning whether the partnership should file any of these forms. The partnership agreement itself need not be filed with the state.

Minnesota limited liability partnerships (LLPs) must file a Limited Liability Partnership Statement of Qualification, and an annual registration.

Minnesota limited partnerships must file a Certificate of Limited Partnership.

Minnesota limited liability limited partnerships (LLLPs) must file both a Certificate of Limited Partnership and a Limited Liability Partnership Statement of Qualification.

Minnesota limited liability companies (LLCs) must file a Limited Liability Company Articles of Organization, and an annual registration. Minnesota LLCs may use the form Articles of Organization provided by the Secretary of State, or they may draft their own Articles of Organization, so long as the requirements of the Minnesota Limited Liability Company statute are followed.

Minnesota corporations must file their Articles of Incorporation and an annual registration. Minnesota corporations may use the form Articles of Incorporation provided by the Secretary of State or they may draft their own Articles of Incorporation, so long as the requirements of the Minnesota Business Corporation law are followed.

Business organizations formed outside the State of Minnesota that transact business operations within Minnesota are required to file certain documents with the Secretary of State. Information on these requirements and applicable forms are provided on the Secretary of State website or may be obtained by writing or calling the Secretary of State's office, 180 State Office Building, 100 Constitution Avenue, St. Paul, MN 55155, telephone 651- 296-2803 (Twin Cities calling area) or 1-877-551-6767 (outside the Twin Cities calling area). A handout available from the Secretary of State's office summarizes Minnesota law on what constitutes "transacting business" in Minnesota.

How do I find out if anyone else is using my business name? ( Top )
The Minnesota Secretary of State's office, telephone 651-296-2803 (Twin Cities calling area) or 1-877-551-6767 (outside the Twin Cities calling area) can tell you if your planned business name is the same as, or not distinguishable from, the name of a corporation, limited liability company, limited partnership, limited liability partnership or trademark on file with the Secretary of State. This check will not reveal the names of businesses operating in other states, however, nor will it reveal any names registered with the U.S. Patent and Trademark Office. A search of the Internet can help you find out whether your planned business name is being used elsewhere. You can search the online trademark registrations of the U.S. Patent and Trademark Office for free, or you can have a trademark search firm do it for you for a fee. The cost depends on the extensiveness of the search.

Will filing with the Secretary of State prevent someone else from using my business name? ( Top )
No. The reason for requiring a business to file a certificate of assumed name is to provide a source of public information on the identity of the business owner. Registration of the assumed name does not protect the name against use by other persons. The Secretary of State's office will, however, inform the first person to file the name of every later filing of that name or similar names. It is up to the individual to decide whether to take legal action to prevent use of the name. An attorney can provide advice on the likelihood of success and potential costs of such a lawsuit.

Likewise, registration of a corporate name, limited liability partnership name, or limited liability company name does not necessarily mean the name can be used without penalty. There may be existing users of the name who have perfected a prior federal or common law right to the name without filing with the Minnesota Secretary of State. Registration of an Internet domain name also may create rights to the name. These users may be able to use the courts to prevent the incorporators, organizers, or business entity from actually using the name even though it may be available for registration with the Secretary of State.

How can I prevent someone else from using my business name? ( Top )
You may be able to register your business name as a trademark or a service mark. A trademark is a "brand name" which associates a product with a particular manufacturer. Service marks are used to identify the providers of specific services. Trademarks and service marks may be registered with the Minnesota Secretary of State, and generally apply to products or services sold in Minnesota. For broader protection, federal registration is necessary.

An attorney familiar with intellectual property law can provide guidance on the best way to protect a business name, and the costs of doing so. General information about federal and state trademarks can be found in two publications of the Minnesota Small Business Assistance Office: A Guide to Starting a Business in Minnesota and A Guide to Intellectual Property Protection. Both may be ordered online or by calling the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area). A Guide to Intellectual Property Protection may be downloaded from the same site.

I'm not quite ready to start my business. Can I reserve a business name for future use? ( Top )
State law allows you to reserve a business name for a corporation or limited liability company. The reservation is made on the Name Reservation form available online from the Secretary of State's office or by calling 651-296-2803 (Twin Cities calling area) or 1-877-551-6767 (outside the Twin Cities calling area). The reservation is effective for 12 months and may be renewed for an unlimited number of 12 month periods.

What tax numbers do I need? ( Top )
Many Minnesota businesses will need one or more tax identification numbers. These include the Federal Tax Identification Number (also known as Federal Employer Identification Number (EIN)), the Minnesota tax Identification Number (also referred to as a MN Sales Tax ID Number), and the Minnesota Unemployment Insurance (UI) Employer Account Number (EAN).

A Federal Tax Identification Number or EIN is required for nearly all businesses. Two exceptions are (1) sole proprietorships that: have no employees, are not required to file information returns, do not have a retirement plan for themselves, and are not required to pay federal excise taxes in connection with their business, and (2) single-member limited liability companies that have elected to be taxed as a sole proprietorship and meet the same requirements as those listed in (1).

A Minnesota tax Identification Number is required for any business that is required to file information returns for income tax purposes, has employees, makes taxable sales, or owes use tax on its purchases. A sole proprietorship or single-member limited liability company that does not have any of these tax obligations does not need a Minnesota tax Identification Number.

All business entities that have services performed for them in Minnesota must register with the Minnesota Department of Employment & Economic Development, Unemployment Insurance (UI) Program. The Department determines whether the entity is liable for unemployment compensation tax, and if so, issues a Minnesota Unemployment Insurance (UI) Employer Account Number (EAN). This Department number is different from the Federal Employer Identification Number (EIN) and the Minnesota tax Identification Number.

Where do I get tax numbers? ( Top )
The Federal Tax Identification Number or EIN number may be obtained online at the Internal Revenue Service (IRS) website, Employer ID Numbers (EINs). The EIN may also be obtained by telephone, with possible follow-up by mail or fax. A completed form should be completed before calling. The telephone number is 800-829-4933. Filing for the EIN may also be done via fax, using the Fax-TIN number 859-669-5760. Another option is to obtain the EIN by mail by filing Form SS-4 with the IRS service center serving Minnesota. Filing done by mail takes approximately four weeks to process. Form SS-4 and instructions are available for downloading from the IRS website, Forms and Publications or by calling the IRS toll-free at 1-800-829-3676. Forms also are available at IRS taxpayer assistance centers in Bloomington, Duluth, Mankato, Minneapolis, Rochester, St. Cloud and St. Paul.

Application for the Minnesota tax Identification Number may be made online at the Minnesota Department of Revenue website, Register for a Minnesota tax ID online. Another option is to apply for a Minnesota tax Identification Number by calling the Minnesota Department of Revenue at 651-282-5225. A representative will assist with the registration process and assign a number immediately. Alternatively, the Minnesota tax Identification Number may be obtained by mail or fax, using the Application for Business Registration (Form ABR). To obtain a copy of Form ABR, contact the Minnesota Department of Revenue, Mail Station 4410, St. Paul, MN 55146-4410, fax 651-297-2265 or download it from the Minnesota Department of Revenue website, Business registration forms and instructions.

The Minnesota Unemployment Insurance (UI) Employer Account Number (EAN) registration may be made online at the Minnesota Unemployment Insurance (UI) Program website. To register by phone (only if you do not have access to the Internet), call 651-296-6141.

What licenses or permits do I need to start my business? ( Top )
Not all businesses are required to be licensed by the state. You have several options for learning whether a state license or permit is required for your business. You can call a business advisor at the Minnesota Small Business Assistance Office at the telephone numbers below to discuss your question. Advisors are normally available from 8 a.m. to 4:30 p.m. weekdays. The telephone number is 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area). Or, you can refer to the Licenses and Permits section of A Guide to Starting a Business in Minnesota, which can be ordered online from the Department of Employment and Economic Development or by calling the telephone numbers listed above. During non-business hours you can leave your order on a voice messaging system. A third option is to use the state website for Minnesota licenses and permits, License Minnesota.

In addition to state requirements, many cities or other units of local government have business licensing requirements. Contact the licensing office or clerk's office of the city where the business is located to determine whether a license or permit is required.

How can I get information on environmental regulations and compliance? ( Top )
The Small Business Environmental Assistance Program (SBAP) of the Minnesota Pollution Control Agency provides free, non-regulatory, confidential environmental assistance to small businesses. The focus is on compliance assistance, but there is also an emphasis on pollution prevention opportunities to get small businesses out of the regulatory loop or into a less burdensome regulatory process. The service is available to all small businesses in Minnesota. Contact the SBAP program at 651-282-6143 in the Twin Cities calling area or 800-657-3938 outside the Twin Cities calling area.

How do I find professional advisors (attorney, accountant, tax advisor)? ( Top )
Business associates, business advisors, bankers, friends and family are all potential sources of referral to professional advisors. Professional associations to which attorneys, accountants and tax preparers belong maintain referral services you can contact for names of potential advisors. In Minnesota these are:

Minnesota State Bar Association Lawyer Referral Service, 514 Nicollet Mall, Suite 300, Minneapolis, MN 55402; telephone 1-800-292-4152. Businesses in Hennepin, Ramsey, and Dakota counties can contact their county bar association referral service. Telephone numbers are 612-752-6666 in Hennepin County; 651-224-1775 in Ramsey County, and 952-431-3200 in Dakota County. Other attorney referral services are operated by Chrysalis Legal Assistance for Women, 612-871-0118; Minnesota Women Lawyers, 612-338-3205, and Resources and Counseling for the Arts, 651-292-4381.
Minnesota Association of Public Accountants, 1711 West County Road B, Suite 300N, Roseville, MN 55113; telephone 651-635-0706.
Minnesota Society of Certified Public Accountants Referral Service, 7900 Xerxes Avenue South, Suite 1230, Bloomington, MN 55431; telephone 952-831-2707 (Twin Cities calling area) or 1-800-331-4288 (outside the Twin Cities calling area).
Minnesota Society of Enrolled Agents, National Referral Hotline, telephone (218) 692-2650 or visit the Minnesota Chapter's website.
AccountAbility Minnesota, 2314 University Avenue, Suite 12, St. Paul, MN 55114; telephone 651-287-0187.

Before selecting a professional advisor, it is recommended that you meet with potential candidates to discuss your specific needs, their credentials, fee arrangements, and other issues important to you. Ask for names of satisfied clients, and check references. Review any proposed retainer agreement and understand it before signing.

Financing the Business

How much money will I need? ( Top )
You will need sufficient funds to cover the costs of start-up, acquisition of inventory and equipment, your building or leased space, wages, salaries and fringe benefits of your employees, other operating expenses, debt repayment, taxes, and your salary as owner of the business. Your business plan can help you analyze your projected income and expenses to determine whether the business is financially feasible, the amount of goods or services you need to sell to break even, and the potential profitability of the business. Doing this before making a financial commitment to starting the business will help prevent one of the leading causes of business failure, insufficient start-up capital. Your accountant can assist you in determining your cash flow needs. You also can contact the SBDC nearest you for help with financial projections and feasibility analysis.

How do I finance my business? ( Top )
Businesses are typically financed with a combination of debt and equity. Debt is obtained by borrowing and must be repaid from the cash flow of the business. Equity is contributed by owners or investors who receive a return from their investment in the form of dividends.

Sources of debt financing include banks, credit companies, savings and loans, government loan programs, friends and family, credit cards, and venture capital companies. Sources of equity financing include personal savings, private investors, venture capital firms and the sale of stock.

A professional advisor such as an attorney or accountant can advise you about the benefits and risks of each type of financing. There also are numerous websites, such as the Small Business Administration's, that can provide guidance on business financing.

How do I get a business loan? ( Top )
The first step is to prepare a business plan that clearly describes your business, its market and management, and financial projections. A Small Business Development Center counselor can review the plan and help you determine the amount of financing your projections likely will support. The counselor can also help you identify potential sources of financing and prepare a loan package. You will then need to approach potential lenders to explain your project in detail and apply for the loan. It may be helpful to contact several lenders prior to preparing loan documents to learn about their lending practices and determine the feasibility of applying for financing.

I don't have much money. Where can I get a grant to start my business? ( Top )
As a general rule, there are no grant programs that help individuals start or operate for-profit ventures. There may be limited exceptions; for example, individuals with disabilities may qualify for funding through the office of rehabilitation services to purchase equipment needed for their business. The Federal Catalog of Domestic Assistance lists all of the federal government's grant programs, including grants where businesses are the beneficiary. There are other websites that list grant opportunities as well. A review of these listings will demonstrate that most government grant programs to assist businesses are in the form of grants to non-profit organizations, educational institutions or governmental units to assist small businesses, rather than grants to the businesses themselves.

Where can I get a low-interest loan? ( Top )
Like grant programs, there are few if any government-sponsored low interest loans. Some of these programs were established by Congress, but have not been funded for many years. Some local programs or local units of government may offer below-market rate loans as an incentive to help a business expand in the area. A Small Business Development Center counselor or local economic development representative may be able to tell you whether any such programs exist in your area.

Will credit problems in my past make it difficult to borrow money for my business? ( Top )
Quite possibly. Credit history is a key factor in any lender's decision to make a loan. If your credit report shows a history of late payments, judgments or tax liens, it will be very difficult to obtain a loan until the adverse entries are removed from the credit report. If you have ever declared bankruptcy or defaulted on a student loan or other federal loan, you may be permanently ineligible to obtain a federal loan such as an SBA-guaranteed loan.

Adverse entries stay on your credit report from three to seven years. You may need to build up a good credit history by borrowing small amounts of money and repaying the loan early, or by taking out a secured line of credit. A secured line of credit is one that is guaranteed by funds you deposit in an account and can't withdraw until the line of credit is paid off.

Are personal guarantees and collateral required for my business loan? ( Top )
Typically, yes.

Should I buy or lease my building and equipment? ( Top )
Consult with your accountant or business financial advisor to discuss the advantages and disadvantages of each option. When starting a business, leasing may be advantageous because it does not tie up your cash in a fixed asset. A disadvantage, however, is that leased buildings or equipment have no resale or salvage value. A purchased building may appreciate in value, resulting in accumulation of equity for the business.

What expenditures are tax-deductible? ( Top )
In general, all expenses incurred to start and operate your business will be tax-deductible. Applicable tax laws and regulations of the federal Internal Revenue Service and the Minnesota Department of Revenue apply to the timing of these deductions. For example, there are special rules on deducting start-up costs, use of a home office, vehicle expenses, and the cost of business meals and entertainment. The Internal Revenue Service and the Minnesota Department of Revenue offer information at their respective websites, and in print form. Questions can also be directed to the IRS by calling 1-800-829-1040 or the Minnesota Department of Revenue at 651-282-5225. Your accountant or tax advisor can also help identify deductible expenses.

All claimed tax deductions must be substantiated by adequate records. For this reason, it is very important to set up a good bookkeeping system and maintain good records from the time you start your business. Your accountant or tax advisor can assist you in setting up your record keeping system and choosing the right accounting system for your business.

I'm considering selling stock in my corporation. What do I need to know? ( Top )
The offer and sale of ownership interests in a business is highly regulated by federal and state securities laws. Examples of securities are corporate stock, interests in a limited partnership, and corporate bonds and debentures. A business owner who is considering giving or selling ownership interests in a business to other persons, even to friends or family members, is strongly advised to seek the advice of knowledgeable legal counsel. This is true whether the ownership interests are transferred when the business is organized or later in its life.

Hiring Employees

I plan to hire my first employee. What do I need to do? ( Top )
You will need to obtain federal and state tax identification numbers and an Unemployment Insurance (UI) Employer Account Number, obtain workers compensation insurance, determine what other kinds of insurance may be needed, arrange for tax withholding and payment of payroll taxes, and file business tax returns. You also need to consider human resources issues, such as recruitment, interviewing, selection, preparation of an employee manual, whether you will use an employment contract, and benefits you will pay your employees.

For detailed information, review the Checklist for Hiring an Employee in A Guide to Starting a Business in Minnesota. This free book is available from the Small Business Assistance Office of the Department of Employment and Economic Development. See our online order form, or call the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

It will be helpful to obtain assistance on human resources issues from qualified legal counsel before beginning the recruitment process.

How do I find qualified employees? ( Top )
Before beginning your search for employees, determine specifically what you want them to do, based on the needs of the company. Written job descriptions can help identify the specific knowledge, skills and abilities you need. Think about whether the company needs full-time or part-time workers. Use recruitment sources that are likely to produce qualified candidates. In addition to word of mouth, consider using trade associations and placement offices of local colleges and universities. MinnesotaWorks is the largest available database of Minnesota job seekers. Access to MinnesotaWorks is free. Advertising in print media and online may be appropriate when seeking a broader range of applicants. Existing employees can also be good sources of qualified candidates for other jobs within the company. Assess the market to assure your proposed salary or wage levels are competitive. The Minnesota Salary Survey, published by DEED’s Labor Market Information Office, provides estimates of wages and employment by occupation. Interview and screen applicants with care. Business Services Specialists are available to assist employers. The more you learn about each applicant's experience and skills, the more likely you are to make a good hiring decision.

How do I know what to pay my employees? ( Top )
Minimum wage levels are established by both federal and state law. Wages or salary above the minimum wage is a matter of negotiation between the employer and the employee. Wage and salary levels are based on a variety of factors, including skills required for the job, the skills and experience of the individual, wage levels for other positions within the company, and competitive factors such as the availability of skilled labor in the market area. Trade associations often have salary survey data that can be used as a reference. Your accountant can provide information on typical cost ratios and profit margins in your industry, and help you determine the impact of the hire on the company's profitability.

What is OSHA? ( Top )
The Occupational Safety and Health Administration (OSHA) establishes and enforces workplace safety standards. All businesses must provide their employees with a workplace that is free from recognized hazards that may cause death or serious injury. A poster advising employees of their rights under OSHA must be placed in the workplace. In Minnesota, OSHA responsibilities are administered by the Occupational Safety and Health Division of the Minnesota Department of Labor and Industry. OSHA offers information and conducts inspections to assure compliance with OSHA regulations. OSHA also offers a safety consultation program to help employers improve their safety and health record, lower the cost of accidents, and reduce OSHA-issued citations and penalties. The Minnesota Safety Council is a private nonprofit organization that offers training and consultation to members on workplace safety issues.

What is workers compensation insurance and where do I get it? ( Top )
Workers compensation insurance provides compensation to employees who have a work-related injury or disease. Generally, all employers are required to carry workers compensation insurance. The Minnesota Department of Labor and Industry offers information regarding the rules and requirements in providing workers’ compensation insurance. In Minnesota, workers compensation insurance is sold through open competition, which means insurance companies establish rates and compete for business. There are several thousand insurance agents in Minnesota who are licensed to sell workers compensation insurance. All workers compensation insurance policies provide coverage mandated by law; only the price and quality of service varies. Shopping for insurance can save money. Other factors to consider in choosing a carrier are claims servicing, safety counseling and the carrier's reputation. Employers who are unable to obtain workers' compensation insurance on the open market because of their size or type of risk may purchase it through the state Assigned Risk Pool. Insurance agents can provide information about this type of plan.

Can I save money by hiring people as independent contractors instead of employees? ( Top )
Perhaps. Hiring a skilled independent contractor to perform a specific job can be a way to get a job done without investing in the costs associated with recruiting and retaining an employee to do the same work. It is extremely important, however, to be certain that the individual is legally an independent contractor and not an employee. A business owner who hires someone as an independent contractor who subsequently is determined to be an employee can incur substantial costs and penalties.

Before determining whether a worker is an employee or an independent contractor, it is advisable to consult with knowledgeable legal counsel or with the appropriate federal or state agency, e.g., the Internal Revenue Service, Businesses with Employee information; the Minnesota Department of Revenue's, Course Guide: Employment Taxes and Employer Issues and Responsibilities; the Unemployment Insurance (UI) Program, Employer Questions; and the Minnesota Department of Labor and Industry, Workers' Compensation Insurance and Occupational Safety and Health information.

Detailed information on whether a worker is an employee or an independent contractor can be found in A Guide to Starting a Business in Minnesota. This free book is available from the Small Business Assistance Office of the Department of Employment and Economic Development. See our online order form, or call the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

Where can I find information on employment laws that apply to my small business ? ( Top )
Employment law can be complicated to understand and follow and it is recommended that you seek assistance from qualified legal counsel. However, you may find the following resources helpful in understanding what requirements you are subject to as an employer.

The Minnesota Department of Employment and Economic Development’s Small Business Assistance Office offers a free book, An Employer’s Guide to Employment Law Issues in Minnesota. This Guide book outlines information including the hiring process, non-compete agreements, wage and hour issues, worker’s compensation, and more. This book is available online or by calling the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

The U.S. Department of Labor (DOL) has developed several tools to help small business owners and workers understand and comply with federal employment laws, including its own Employment Law Guide. This Guide describes DOL�s main laws and regulations in plain language for employers needing introductory information to develop wage, benefit, safety and health and nondiscrimination policies for their businesses. The Guide is available in English and Spanish online or by calling 1-866-4-USA-DOL.

The DOL also offers employment law online tools including elaws Advisors, an interactive web-based tool that helps employers and workers understand and comply with federal employment laws. This interactive website mimics the interaction a person may have with an employment law expert. DOL also offers a Compliance Assistance website where employers can access a wide range of information and resources on DOL�s rules and regulations.

Employers can always find answers to questions on a range of federal employment and regulatory issues by calling the U.S. Department of Labor at 1-866-4-USA-DOL. DOL can provide assistance in more than 140 languages on issues including job loss, business closures, pay and leave, workplace injuries, safety and health, pension and health benefits, and reemployment rights for National Guard members, veterans and reservists.

Inventors and Inventions

I want to market my invention. Where can I get help? ( Top )
The Minnesota Inventors Congress (MIC), located in Redwood Falls, Minnesota, provides information on the invention process. An "Inventors Toolbox" posted on the MIC website, offers tips and checklists for managing the invention process. An "Inventors Checklist" helps the inventor evaluate his or her invention to determine its market potential. The MIC may be reached by telephone at 1-800-INVENT1" or online.

The Minnesota Small Business Assistance Office of the Department of Employment and Economic Development publishes a booklet, A Guide to Intellectual Property Protection, available free by calling the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area). The publication may be ordered online or downloaded from the Department of Employment and Economic Development website.

Should I use an invention marketing firm? ( Top )
Invention marketing firms, also called invention services firms, offer an array of services to inventors ranging from advice to prototype development to marketing assistance. Some of these firms are reputable; some are not. Before deciding whether to use an invention services firm, check it out carefully with organizations like the Better Business Bureau, the state Attorney General's Office, and prior clients. Understand what services you will receive for your money, and be especially wary of marketers that require a large up front fee, with only vague promises of the services they will render.

Invention services firms are regulated under Minnesota law (Minnesota Statutes Chapter 325A). The law requires such firms to provide their clients with a contract, which must contain certain statutory disclosures. There is a three-day cooling-off period, during which time the client may cancel the contract. Invention services firms must be bonded, and clients who are damaged by the firm's failure to comply with the law may bring a civil action against the firm.

It is highly recommended that the contract be reviewed by a knowledgeable attorney prior to signing.

Where can I learn more about patents and trademarks? ( Top )
Libraries have numerous books dealing with inventions and protection of intellectual property through patents, licensing and trademarks. Attorneys who specialize in intellectual property law can also provide valuable advice. In addition, the free book, A Guide to Intellectual Property Protection, is available from the Small Business Assistance Office of the Department of Employment and Economic Development. See our online order form, or call the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

Insurance

What insurance should I have for my business? ( Top )
The type and amount of business insurance a small company should have depends on many factors. These factors should be discussed with an experienced insurance agent or broker, in order to custom tailor an insurance package to fit the needs of the business. Some common types of business insurance are:

Property insurance, which protects against loss caused by destruction by fire, wind, explosion and other perils.
Business interruption insurance, which protects against loss of earnings resulting from an interruption caused by damage to the physical property.
Liability insurance, which protects against loss arising out of legal liability for death, injury or damage to the person or property of others caused by negligence.
Fidelity or surety bonds, which guarantee against loss due to the dishonesty of employees (fidelity bonds) or which guarantee the performance of various types of obligations assumed by contract or imposed by law (surety bonds).
Workers compensation insurance, which pays benefits to injured workers arising out of a workplace accident.
Product liability insurance, which protects against loss arising from damage caused by a product manufactured by the business.
Group insurance (life and health) for employees. Policies must meet requirements established by federal and state law.
An emerging area, created by the growth of the internet and electronic commerce, is e-insurance for companies with an on-line presence. A knowledgeable insurance agent can advise the business owner on the need for this type of insurance.

What if I'm unable to obtain insurance? ( Top )
Two state programs assist small companies that are having difficulty in obtaining liability insurance. The Minnesota Joint Underwriting Association (MJUA) provides liability insurance to persons or entities that cannot obtain insurance through ordinary methods. The insurance must be required by law or it must be necessary to earn a livelihood or conduct a business and must serve a public purpose. It is not available for product liability or environmental impairment coverage, or for group insurance offered to employees. The application is forwarded to the MJUA through the Minnesota Market Assistance Plan (MMAP). The MMAP has 30 days to produce a quote for the applicant before the MJUA can provide coverage. If the MMAP is not able to produce a quote, and the statutory requirements for MJUA coverage have been met, the MJUA then issues coverage. Contact MJUA at (651) 222-0484 or 1-800-552-0013. Contact MMAP at (763) 479-1056 or 1-800-257-1838.

Companies that contract with the federal government must post surety bonds on federal construction projects valued at $25,000 or more. Many state, county, and private sector projects require bonding as well. The U.S. Small Business Administration's surety bond guarantee program can guarantee bid, performance and payment bonds for contracts up to $2 million for small companies that cannot obtain bonds through regular commercial channels. Contractors can apply through a surety bonding agent, or through a company designated by SBA as a preferred surety. Prior SBA approval of the guarantee is required for applications processed by a surety bonding agent, but not for applications through a preferred surety. SBA's surety bond guarantee home page provides details on this program.

Where can I get health insurance for my employees? ( Top )
Contact a knowledgeable insurance agent or broker to obtain quotes for group insurance. In some cases, trade associations offer group policies as a benefit to their members.

Marketing

What is marketing and why is it important? ( Top )
There are many definitions of marketing, but essentially it is a process by which a business enterprise identifies its targeted customers, assesses their needs or wants, and manages its resources to satisfy those customer needs or wants. If successful, a firm's marketing efforts will result in the target market customers purchasing enough of the company's products or services at a price that covers manufacturing and overhead costs and provides a satisfactory profit. Small companies have limited resources, and having a sound marketing plan can help focus those resources to maximize profitability.

How do I prepare a marketing plan? ( Top )
There are numerous library and on-line resources to assist in preparing a marketing plan. The Small Business Administration's Library & Resources offers Marketing Series publications. Marketing plans typically describe the following:

The product or service
The target market, in detail
The competition
The distribution channels for selling the product or delivering the service
The marketing budget
Pricing strategy
Promotion strategy

Where can I get help with my marketing plan? ( Top )
Assistance in developing marketing plans and conducting market research can be obtained from many private marketing consultants. Colleges and universities may have student teams available to assist with market research. Small Business Development Centers also have experienced marketing consultants who can assist with marketing plans and market research. Small Business Development Centers also have access to library materials that are important sources of secondary market research information.

What can market research do for me? ( Top )
Market research can help you understand who your customers are, what they want, how and where they buy, and what influences their buying decisions. Market research can help assess demand for a product or service, evaluate pricing strategies, test new products and refine ideas, and develop advertising strategies.

How do I price my product or service? ( Top )
Pricing can be somewhat complicated. Initially, the business owner must determine the direct costs of labor and materials and the cost of overhead. To this is added a reasonable profit. The result is compared against the market to determine whether the price is competitive. A Small Business Development Center counselor can assist you in determining a reasonable price for your product or service.

How do I get bar codes for my products? ( Top )
Many stores require bar coding on the packaged products they sell. If you are selling your products to such entities, labels must contain bar codes. The Uniform Code Council, Inc., a private, membership organization, assigns a manufacturer's identification code to a product for the purposes of bar coding. For additional information contact the GS1 US (Uniform Code Council), Princeton Pike Corporate Center, 1009 Lenox Drive, Suite 202, Lawrenceville, NJ 08648, 609-620-0200. Online registration and information about obtaining bar codes is available at the GS1 US BarCodes and eCom.

How do I get a website for my business? ( Top )
Before establishing a presence on the Internet through a website, a business owner should carefully think through the reasons for doing so. Is it to simply provide information about the company? To provide a means of communication between the company and its customers? To facilitate ordering? Careful consideration of these issues will help assure that the investment in Internet access and web design will meet the firm's expectations.

The steps to establishing a website include obtaining an Internet Service Provider (ISP) to provide connection to the Internet and a server for hosting the website; obtaining a domain name, or business address on the Internet; determining the content of the site, and designing (or hiring the design of) the website. There are many private consultants and website hosting services that offer assistance in establishing a web presence. As with any contractual arrangement, it is important to understand what services will be provided, and the costs.

It is also important to understand the legal issues involved in operating a website. A comprehensive booklet, A Legal Guide to the Internet, is available from the Small Business Assistance Office of the Department of Employment and Economic Development. See our online order form, or call the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

Selling to the Government

How do I find out about selling my product or service to the federal government? ( Top )
Federal agencies buy billions of dollars worth of products and services from private companies annually. Many of these procurements are designated for purchase from small businesses. A summary of these programs is published in A Guide to Starting a Business in Minnesota, available from the Small Business Assistance Office of the Department of Employment and Economic Development. See our online order form, or call the 24-hour order line, 651-556-8425 (Twin Cities metro calling area) or 1-800-310-8323 (outside the Twin Cities calling area).

Assistance in learning about federal procurement opportunities is available in Minnesota from the Minnesota Department of Employment and Economic Development, Office of Science and Technology, Small Business Innovation Research Program (SBIR) and Small Business Technology Transfer Program (SBTT) programs. Previously known as the Minnesota Project Innovation (MPI), the SBIR/STTR Assistance Programs offer training on accessing government markets, a service for matching procurement needs of federal agencies with products or services offered by its clients, and individual counseling.

How do I find out about doing business with the State of Minnesota? ( Top )
Like the federal government, the State of Minnesota has several programs for purchasing goods and services from small companies and small companies owned by members of targeted groups. The Minnesota Department of Administration, Materials Management Division website provides information. The Procurement Help Line, 651-296-2600, can also answer questions.

Where do I register to participate in government procurement programs? ( Top )
The U.S. Small Business Administration, the Department of Defense, the Office of Management and Budget and the General Services Administration have taken steps to simplify the federal contracting process by creating an integrated database of small businesses that want to do business with the government.

The integration of PRO-Net and the Department of Defense (DOD) Central Contractor Registration (CCR) databases has created one portal for entering and searching small business sources. This integration assists small businesses with marketing their goods and services to the federal government. Registration in CCR is now a requirement for federal contracts.

Procuring agencies and contracting officers use CCR as the authoritative source for vendors that are certified in SBA's 8(a) Business Development program, HUBZone Empowerment Contracting Program and Small Disadvantaged Business program. To conduct market research and confirm eligibility for SBA's procurement preference programs, users can now go to the CCR website on the Dynamic Small Business Search button. Search options and vendor information may be found at the CCR Dynamic Small Business Search site. To register in the CCR, or for more information on the program, visit the CCR website.

What is a HUBZone, and what are the benefits of locating my business in one? ( Top )
The HUBZone (Historically Underutilized Business Zone) program is sponsored by the U.S. Small Business Administration. The goal is to stimulate economic development and create jobs in impoverished urban and rural communities by using federal purchasing preferences. Businesses that are located in a HUBZone and employ staff who live there can apply for HUBZone certification. Once certified, they are eligible for preferences in certain federal procurements. HUBZones are identified by census tract, and can be found at the U.S. Small Business Administration's HUBZone website.

Women- and Minority-Owned Firms

Are there special programs for women- or minority-owned businesses? ( Top )
The federal government and the state offer several programs to help socially and disadvantaged businesses compete for government contracts. Women- and minority-owned businesses often are eligible for these programs.

Under new federal procurement regulations, the U.S. Small Business Administration certifies Small Disadvantaged Businesses (SDBs) for participation in federal procurements aimed at overcoming the effects of discrimination. Businesses must meet specific social, economic, ownership, and control eligibility criteria for SDB certification. Once certified, the firm is added to an on-line registry of SDB-certified firms maintained in Pro-Net. Certified firms remain on the list for three years. Contracting officers and large business prime contractors may search this on-line registry for potential suppliers. SDBs are eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts in certain industries. The program also provides evaluation credits for prime contractors who achieve SDB subcontracting goals.

The U.S. Small Business Administration sponsors the Minority Enterprise Development Program, or "8(a)" program. This program assists socially and economically disadvantaged entrepreneurs in competing for federal government contracts. To qualify, an applicant must be owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of the United States. The business must demonstrate potential for success. Current law creates a presumption that certain ethnic minority groups are socially and economically disadvantaged. Individuals who are not ethnic minorities and disabled individuals may qualify if they can demonstrate by a 'preponderance of the evidence' that they have been subjected to racial or ethnic prejudice or cultural bias because of their membership in a particular group. Information on certification for the 8(a) program can be found on SBA's 8(a) homepage or by contacting the Minneapolis SBA office, telephone 612-370-2324.

SBA houses the Office of Federal Contract Assistance for Women Business Owners (CAWBO). The purpose of this office is to increase federal contracting opportunities for women-owned small businesses and to increase the number of women-owned small businesses that successfully compete in the federal marketplace. While it is not necessary to be certified to participate in federal contracting, certain special procurement programs, such as the HUBZone, 8(a) and Small Disadvantaged Business programs, do require certification. Women business owners are encouraged to apply for any of these programs for which they are eligible.

The State of Minnesota offers a targeted group procurement program to help remedy the effects of past discrimination against members of targeted groups. To be considered under the program, a business must be designated as a targeted business by the Commissioner of Administration. For information, go to the Department of Administration, Materials Management Division, Targeted Group/Economically Disadvantaged (TG/ED) Small Business Program website, or call the procurement help line at 651-296-2600.

At the present time, there are no loan or grant programs specifically earmarked for women- or minority-owned businesses.