ECONOMIC DEVELOPMENT: ‘Angels’ generating economic expansionThe economy of west central Minnesota and quite frankly all of the state of Minnesota is improving.
By: Harold Stanislawski, Prairie Business Magazine
Manufacturing jobs are on the mend and growing and consumer spending is up. It appears our region is not only in an economic recovery mode, but is actually in an economic expansion mode. This was emphasized recently when Toby Madden, a regional economist in the public affairs department at the Federal Reserve Bank of Minneapolis, visited Fergus Falls, Minn., and gave an upbeat talk that showed data verifying that, indeed, we are in a time of economic expansion.
Part of the economic expansion is being generated by new sources of wealth creation. Many start-up and early-stage companies in Minnesota are on the move. In fact, a recent Minnesota Angel Tax Credit program summary shows the following data regarding Minnesota Angel Tax Credit Activity:
- 288 businesses were certified in 2010 to 2011.
- Investments were made in 180 companies in 2010 to 2011.
- 623 investors were certified in 2010 to 2011.
- 821 investors made investments in 2010 to 2011.
- $91 million in investments were made pursuant to the program in 2010 to 2011.
Of the investors who used the Minnesota Angel Tax Credit, 530 investors or 71 percent were from Minnesota and 217 or 29 percent of the investors were non-Minnesotans.
In 2011, the companies that received investments were 11 in biotechnology, 26 in software, five in electronic instrumentation, 29 in medical devices and equipment, 11 in clean technology, five in consumer products and services, eight in healthcare services, six in internet/web services, three in food, six in information technology services and three in other industries. A total of 113 companies received investments in 2011.
The Minnesota Angel Tax Credit program allows the following and is proving to be an excellent tool in the economic enhancement toolbox for the state and region.
-25 percent tax credit for investments in small emerging businesses.
-Program funding of 12 million in credits annually from 2011 to 2014.
-A state refund if credits exceed tax liability.
To learn more about the Minnesota Angel Tax Credit program go to: www.PositivilyMinnesota.com/angelcredit.
Activity for new companies is high in Minnesota. Our region is reviewing deals monthly and the preparedness of the companies certified by the Minnesota angel network is impressive.
Stay positive — Minnesota businesses and entrepreneurs are on the move. PB
Harold Stanislawski is executive director of the Fergus Falls Economic Improvement Commission. Reach him at firstname.lastname@example.org or call 218-332-5428.
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