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DEED: business expansions and state grants drove investment in 2024; agency highlights CHIPS, MIF/JCF and small‑business programs
Summary
The Minnesota Department of Employment and Economic Development reported multiple private investments and program rollouts, including CHIPS‑related matching funds, the Minnesota Investment Fund and Job Creation Fund activity, small‑business loans and childcare slot grants; DEED said early 2025 results show continued expansions.
Matt Berlek, commissioner of the Department of Employment and Economic Development, told the Senate Jobs and Economic Development Committee that Minnesota saw notable private investment and business expansions in 2024 and that the agency has been implementing major 2023 budget initiatives.
Berlek said the state recorded 113 business expansions in 2024 and cited roughly $12 billion in outside investment connected with DEED‑assisted projects; he also said the state tracked about 2,000 jobs created in 2024 that were tied to agency incentives and that DEED had already reached roughly 1,800 jobs in the first half of fiscal 2025.
Commissioner Berlek and Government Relations Director Devin Bowdre summarized key programs DEED is managing or deploying:
• Minnesota Forward Fund (CHIPS/DOD matching): DEED reported allocations of state matching funds intended to leverage federal CHIPS and Department of Defense manufacturing investments; Berlek said awards to date total roughly $124 million in state grants, paired with larger federal and private matches. • Minnesota Investment Fund (MIF) and Job Creation Fund (JCF): DEED said the MIF and JCF have supported large projects, including a solar‑manufacturing project (identified in the DEED presentation as “Helene”), a medical‑manufacturing expansion (Phillips Image Guided Therapy) and international investments recognized by the governor (Sofidel). • Small‑business and innovation support: DEED summarized the Emerging Entrepreneur loan program, the Angel Tax Credit, Launch Minnesota grants (up to $35,000), Promise Act grants and loans, and a state small‑business credit initiative funded through ARPA allocations. • Childcare and small‑business technical assistance: DEED reported investments to increase child‑care slots (including allocations reserved for greater Minnesota) and funding for Small Business Development Centers and community nonprofits that provide tailored technical assistance.
Berlek emphasized overall labor‑market strength — six consecutive months of net job growth and a 3.3% unemployment rate — while noting persistent disparities in wages and outcomes for workers of color. He said Minnesota ranks highly in national business‑environment indices and that the agency’s work aims to sustain private investment and recruit/moderate expansions.
Committee members asked for details on fraud prevention and program integrity; DEED responded that agency grants and loans follow internal‑control procedures, audits, IRS filings (e.g., Form 990 for nonprofits) and Department of Administration policy, and that DEED reviews budgets and project plans before disbursing funds. Berlek said the agency balances speedy delivery of funds with program integrity and cited internal audits and coordination with the Office of the Legislative Auditor and other partners.
DEED also highlighted the department’s role in deploying Explore Minnesota for Business funding and other outreach tools to help attract employers and workers. Berlek asked the committee to consider how to keep Minnesota “sticky” for graduates and young professionals as the committee deliberates workforce and business attraction policies.
