CPED has new business finance program
Loan Guaranty Program helps small businesses obtain credit
In January 2006, the Minneapolis City Council approved a new loan program the Loan Guaranty Program —to help small businesses obtain additional credit from conventional sources.
The Citys Department of Community Planning and Economic Development (CPED) works in cooperation with lenders and the Minneapolis Consortium of Community Developers (MCCD) to provide loans and technical assistance to Minneapolis businesses. The program is aimed at businesses that have been in operation at least a year and need additional financial assistance but may not meet the underwriting criteria of commercial lenders. CPED may guarantee up to 33 percent of the lender’s loan to a maximum of $25,000.
Loans may be used for working capital, production contracts, inventory, receivables financing, general business operations and equipment.
February 3, 2006