Nov. 6–U.S. Bank has invested $100,000 in the Northeast Entrepreneur Fund in Virginia to help develop new businesses and jobs in northern Minnesota.

This is the first time the Minneapolis-based bank has made an investment in community development funds that are focused on helping small businesses in mainly rural areas. U.S. Bank also invested $150,000 in the Southeastern Development Fund in Sioux Falls, S.D. in June.

“If there’s a need, we’ll be looking at more of these projects,” said Karen Greenwood, a spokeswoman for U.S. Bank. “Mainly our big interest is that it stimulates the community. Demand far exceeds the supply.”

The investments won’t compete with U.S. Bancorp’s venture capital arm, Piper Jaffray Ventures in Minneapolis, which will be spun off in December along with the entire Piper Jaffray investment bank unit, she said. U.S. Bancorp is a limited partner in Piper Jaffray Ventures and will remain so after the split, said Buzz Benson, a managing director of Piper’s $275 million venture fund.

“It’s probably not a bad idea to do if the bank wants to invest in local funds that promote entrepreneurship and business in regional areas,” Benson said of the U.S. Bank investment.

U.S. Bank decided to invest in the Northeast Entrepreneur Fund because northeastern Minnesota has lost more jobs than most other parts of the state in the past few years, Greenwood said. The investment is a long-term loan with an extended repayment period.

The nonprofit Northeast Entrepreneur Fund helps people start or expand businesses in northeastern Minnesota and northwestern Wisconsin. It also provides loans of up to $100,000. U.S. Bank’s investment “allows us to continue to reinvest this money into the community and build business that will ideally grow,” said Anita Provinzino, chief operating officer of the $1 million fund.

The Northeast Entrepreneur Fund, which is financed through the federal government and private contributions, has helped more than 670 businesses and has made 293 loans totaling $4 million since it began in 1989.

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