Business Development Asset
FAIM Program funds may be used to start a small business or enhance/expand an existing small business in Minnesota. The local FAIM agency and FAIM Admin team shall determine the realistic possibilities of such ventures. The business must be legal, feasible, viable, and sustainable to provide income to support the FAIM participant in the long term.
FAIM participants must choose a name for the business, register for an EIN with the IRS (even if operating as a sole proprietorship) and State of Minnesota, develop a qualified business plan and projected budget (templates available), open a business checking account at an insured financial institution, and work with a mentor from a business development center to refine and approve their detailed, viable business plan. If using a template from another source, the client must cover all of the topics from the FAIM template to meet program requirements. Participants must successfully complete 12 hours of financial management training along with 10 hours training related to their business.
To be eligible for FAIM, participants must:
- Be at least 18 years of age
- Be a resident of Minnesota (at time of enrollment through exit from FAIM)
- Be a US citizen or eligible non-citizen
- Have earned income from employment or self-employment
- Have total household net assets of less than $10,000
- Have combined household annual gross income at or below 200% of poverty
- Ability to save up to $2,000 within 24 months
- Ability to purchase the asset within a maximum of 30 months.
Resources for business development
- Market Research and Pricing
- Small Business Marketing
- Locate a Small Business Development Center (SBDC) in MN: https://mn.gov/deed/business/help/sbdc/