East Grand Forks is designated as an enterprise zone in participation with the Border Cities Enterprise Zone, in accordance with MN Statute 469.171. 

There are four types of tax reductions that may be approved by the commissioner for businesses located here. East Grand Forks currently offers use of three tax reductions:

1. For newly constructed facilities, a partial property tax reduction for property taxes based on the portion of the property taxes created by a new business in the City;

2. For expanded business, a partial property tax reduction for additional property taxes created by an expansion to an existing business in the City; or

3. A sales tax exemption for sales tax on construction materials or new machinery and equipment to be used at the newly constructed or expanded facility to be located within the City.

Midwest MN Community Development Corporation is able to work with businesses interested in utilizing new market tax credits which can include: difficult-to-finance projects viable through lower interest rates, partial debt forgiveness, higher loan-to-value ratios, extended amortization periods, reduced debt service requirements and/or interest-only payments for seven years.

DEED serves as the state's economic development arm to assist businesses and communities, both directly and indirectly. 

Such programs include:

• Minnesota Investment Fund (low interest loan for industrial & manufacturing)
• Emerging Entrepreneur Loan (low interest loan for diverse startups)
• Native American Business Loan (low interest loans for people of Native heritage) 
• MN Reservist and Veteran Business (low interest loans for military members)
• Automation Loan Program (low interest loan for AI/automation equipment & technology)
• Community Wealth Building Program (low interest loans for co-ops, esops, and community land trusts)
• Cannabis Industry Startup Financing (low interest loans for new cannabis purveyors in the state)
• MN Forward Fund, Expanding Opportunity Fund, LaunchMN Grants, and many more.

East Grand Forks is not included in the Opportunity Zone designation due to the high level of income generated from local agricultural production which skews the average income level. We encourage you to ask our 1B State Representative & Senator to petition to include this community in the next determination round.