Le Center is dedicated to creating an environment where businesses can start, grow, and succeed. The city actively works to attract new employers, retain existing businesses, encourage job creation, and strengthen the local tax base. Our economic development staff partners with businesses throughout every stage of expansion or redevelopment by implementing strategic programs, serving as the primary point of contact for new and existing businesses, and guiding projects through the development and approval process.
Businesses choosing Le Center benefit from a welcoming partnership with city staff, access to local and regional financial incentives, a workforce recognized for Midwest talent and strong work ethic, diverse housing opportunities, an excellent school district, and a community rich with events and activities. Le Center offers the foundation, resources, and community support needed for long-term business success.
Business Retention and Expansion Program
A healthy and vibrant local economy and community depend on strong local businesses. Research consistently shows that existing businesses generate 60% to 80% of all new jobs, making business retention a critical component of economic development. To support this effort, the City of Le Center has developed a Business Retention Program that includes annual visits with local businesses.
These visits use a prepared survey to gather information on topics such as building size, employee count, products and services offered, and future investment or expansion plans. A summary of the collected data is presented annually to the Economic Development Authority (EDA), while individual business details remain confidential.
Business visits also provide an opportunity to share information about city projects, upcoming events, financial resources, and other opportunities that may benefit local businesses. Business owners or managers interested in scheduling a visit are encouraged to contact the City of Le Center. For additional information about Business Retention and Expansion visits, please visit BRE Programs.
Le Center Business Financial Incentives & Assistance
Le Center is ready to invest in your future. Whether you are launching a new business, expanding operations, or pursuing new opportunities, a wide range of local, regional, state, and federal financial assistance programs are available to help support your goals.
Local Incentives and Assistance
Tax Increment Financing (TIF)
The City of Le Center offers Tax Increment Financing (TIF) assistance to businesses and to development projects for the purpose of creating new jobs, increasing the tax base and eliminating blighted and substandard structures. The assistance requires proof that the development would not otherwise occur without TIF. It can be used for land write downs and/or qualified site improvements as mutually agreed by the EDA/City and the business/developer.
Tax Abatement
Tax abatement is a finance tool that Le Center can use to encourage private development. The eligibility criteria are defined by state statutes. It is generally targeted to new developments that increase the tax base and create jobs.
Revolving Loan Program
The City of Le Center offers a revolving loan fund to assist businesses with financing real property acquisition, building improvements, development, machinery and equipment purchases. The maximum loan amount is not to exceed 50 percent of the project costs. Maximum loan amount is $30,000. Typical rates and terms are: Rate set annually below current prime rate; Loans will be amortized over 10 years with no prepayment penalty. All loans require appropriate collateral and personal guarantees.
Micro-Loan Program
The City of Le Center offers a micro loan fund to assist businesses with financing building improvements, development, machinery and equipment purchases. The maximum loan amount is not to exceed $5,000. Typical rates and terms are: Rate set annually below current prime rate; Loans will be amortized 5 years with a term not to exceed 5 years with no prepayment penalty. All loans require appropriate collateral and personal guarantees.
State Incentives and Assistance
Minnesota Investment Fund (MIF) - State of Minnesota (DEED)
This is a state financing program to help industrial manufacturing and technology-related business expand and create new jobs. Funds are awarded to local units of government who provide funds to assist expanding businesses. Assistance can be in the form of a loan or grant based upon the project. The maximum amount of funding is typically $500,000 depending on the jobs created and capital investment. Focuses on industrial, manufacturing, and technology related industries that increase the local and state tax base and improve economic vitality statewide. Funding may be used to purchase land, machinery, and equipment. Interest rates are typically negotiated with terms matching the useful life of the asset being financed. Loans require appropriate collateral and personal guarantees. While the maximum amount is $500,000 in some cases, more than one governmental entity can apply for funds for the same project thereby increasing the available dollars for a project. For more information, visit Minnesota Investment Fund (MIF) .
Job Creation Fund (JCF) – State of Minnesota (DEED)
This MN-DEED performance-based program is available to businesses engaged in manufacturing, warehousing, distribution and technology-related industries. Companies deemed eligible to participate may receive up to $1 million for creating or retaining high-paying jobs and for constructing or renovating facilities or making other real property improvements. The performance contract is between the company and the State of Minnesota. The local jurisdiction is required to endorse the project through a resolution prior to grant submittal to the State. For more information, visit Minnesota Job Creation Fund (JCF).
Automation Loan Participation Program – State of Minnesota (DEED)
DEED makes companion loans intended to fill gap financing needs for businesses purchasing machinery, equipment, or software to increase productivity and automation. Eligible borrowers include manufacturing, distribution, technology and warehousing businesses located in Minnesota. Eligible industries are evaluated based on NAICS codes and do not include businesses whose primary activity is Retail Trade or Transportation. The program targets businesses with fewer than 500 employees. Loans are made in conjunction with private financing from a lead lender, typically a bank. Private financing will ideally be five times the amount of the requested DEED loan and is required to be at least equal to the DEED loan. Loans may be up to $500,000 with 1% interest on a 5 to 7-year term. For more information, visit Minnesota Automation Loan Participation Program.
Emerging Entrepreneur Loan Program – State of Minnesota (DEED)
The Minnesota Emerging Entrepreneur Loan Program (ELP) supports the growth of businesses owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities. DEED provides grant funds to a network of nonprofit lenders which use these funds for loans to startup and expanding businesses throughout the state. DEED provides grant funds to a network of non-profit lenders which use these funds for loans to startup and expanding businesses throughout the state. The program has additional goals of providing jobs for minority and low-income persons, creating, and strengthening minority business enterprises, and promoting economic development in low-income areas. For more information, visit Minnesota Emerging Entrepreneur Loan Program.
Job Training Incentive Program – State of Minnesota (DEED)
The Job Training Incentive Program provides grant funding to new or expanding businesses located in Greater Minnesota for the purposes of training workers and quickly and efficiently as possible. Grants of up to $200,000 are awarded to eligible businesses to provide training for new jobs. Eligible applicants include businesses located outside of the seven-county metropolitan area or located in the cities of Cannon Falls, Hanover, Rockford, Northfield and New Prague that are adding at least three new jobs. The new jobs must pay wages at least equal to 120% of federal poverty guidelines for a family of four. For 2026, this is $39,600 per year. The new jobs must also provide at least 32 hours of work per week for a minimum of nine months per year. Businesses are required to match the grant on a .5:1 basis. For more information, visit Minnesota Job Training Incentive Program.
Automation Training Incentive Program – State of Minnesota (DEED)
Grants of up to $35,000 are available to small businesses in the manufacturing or skilled production industry for the express purpose of training incumbent workers as quickly and effectively as possible on new automation technology. The program is available to existing Minnesota Businesses located outside of the seven-county metropolitan area or located in the cities of Cannon Falls, Hanover, Rockford, Northfield, and New Prague that are investing in new automation technology at the project location. Training is for existing, full-time jobs paying at least 120% of federal poverty guidelines for a family or four. For 2026, this is $39,600 per year. For more information, visit Minnesota Automation Training Incentive Pilot Program.
Low Income Worker Training Program – State of Minnesota (DEED)
The Low-Income Worker Training Program helps workers whose incomes are at or below 200% of the federal poverty guidelines gain new skills necessary to move up the career ladder to higher paying jobs and greater economic self-sufficiency. The program provides grants of up to $200,000 to Minnesota public, private, or nonprofit entities that provide employment services to low-income individuals. No match from grant recipients is required. The goal of MJSP is to target short-term training for full-time employment in the growth sectors of the state's economy. For more information, visit Minnesota Low Income Worker Training Program.
Growth Loan Fund – State of Minnesota (DEED)
GLF supports entrepreneurial growth throughout Minnesota by offering low-interest loans to early-stage businesses that are seeking to raise equity investments. Businesses seeking funding through this program need to be engaged in, or be committed to engage in, technological innovation in Minnesota. Qualified high-technology fields include, aerospace, agricultural processing, renewable energy, energy efficiency and conservation, environmental engineering, food technology, cellulosic ethanol, information technology, materials science technology, nanotechnology, telecommunications, biotechnology, medical devices, pharmaceuticals, diagnostics, biologicals, chemistry, veterinary science, or similar. For more information, visit Minnesota Growth Loan Fund
Federal and Regional Incentives and Assistance
USDA Rural Development
The United States Department of Agriculture (USDA) Rural Development is committed to helping improve the economy and quality of life in rural America. They offer loans, grants, and loan guarantees to help create jobs and support economic development and essential services such as housing, health care, first responder services and equipment, and water, electric and communications infrastructure. They promote economic development by supporting loans to businesses through banks, credit unions and community-managed lending pools. They provide technical assistance to help communities undertake community empowerment programs. They also help rural residents buy or rent safe, affordable housing and make health and safety repairs to their homes. For more information, visit USDA Rural Development - Minnesota.
South Central Region Small Business Development Center (SBDC)
The Small Business Development Center located in Minnesota State University, Mankato, Minnesota, offers no-cost, customized consulting to businesses throughout their entire life cycle, from the excitement of the idea stage and the thrill of the launch to the challenges of growth periods and distressed times. For more information, visit South Central MN SBDC.
Southern Minnesota Initiative Foundation
Southern Minnesota Initiative Foundation (SMIF) is a donor supported regional development and philanthropic organization that invests for economic growth in the 20 counties of south central and southeastern Minnesota – this includes 175 communities and one Native nation. SMIF’s key interests include entrepreneurship, early childhood development and community vitality. Southern Minnesota Initiative Foundation promotes vitality in 20 counties of southern Minnesota through a culture of collaboration and partnership. For more information, visit Southern Minnesota Initiative Foundation.
Region Nine Development Commission
Region Nine Development Commission serves a nine (9) county region, striving to create more stable and viable communities. Their mission is to promote the development of the region through intergovernmental cooperation, community and human development, long-range planning, and technical assistance. For more information, visit Region Nine Development Commission
Women Venture
Women Venture is a Women's Business Center as designated by the U.S. Small Business Administration (SBA). They help women start and grow profitable and sustainable businesses. Women Venture provides access to capital, business consulting, training and development, mentorship, and a community of support to our clients and community. For more information, visit Women Venture.
Career Force
Career Force is Minnesota's career development and talent matching resource dedicated to success. They guide people toward rewarding careers, connect individuals to opportunities, and provide valuable economic and employment development information for employers. They do everything in their power to help career seekers, employers, and Minnesota communities thrive. For more information, visit Minnesota Career Force
Midwest Business Finance Corporation (MBFC)
Midwest Business Finance Corporation a private non-profit certified development company, offers fixed rate, low interest SBA 504 real estate financing loans as well as complete packaging for new and expanding businesses. For more information, visit Midwest Business Finance Corporation – MBFC
MinnPACE
PACE (Property Assessed Clean Energy) is a smart financing option for commercial, industrial, multi-family, or agricultural property owners looking to make energy-saving improvements. Whether you’re planning renovations or building from the ground up, the program can help you make upgrades like new windows, insulation, HVAC systems, lighting, and solar. Unlike traditional loans, financing is repaid through a voluntary property tax assessment. With up to 100% financing available — covering both hard and soft costs - making it simple to launch projects that lower energy bills, increase property value, and advance sustainability goals. For more information, visit MinnPACE.