City announces loan program for emerging entrepreneurs
The City of Minneapolis is partnering with the Community Reinvestment Fund, USA (CRF) and banks, to offer Emerging Entrepreneur Capital Acquisition Loans to help newer businesses (two years or newer) and community organizations purchase and rehab commercial properties.
The City collaborates with CRF to fund up to 40 percent (a maximum of $400,000) of the appraised value, and a commercial bank provides up to 50 percent or more. Only 10 percent equity is usually required. The sharing of risk with the bank lowers the interest rate. Rates are fixed for the life of the loan, up to 20 years.
Loans may be used to buy and rehab commercial and/or industrial properties, including mixed-use; refinance contracts for deeds in conjunction with acquisition; and purchase new production equipment.
The loan program is geared toward borrowers who lack adequate down payments, have had credit problems, or have had financial difficulties and are now in a turnaround position showing positive trends.
The City of Minneapolis also offers other finance tools for the small business owner. For more information, call (612) 673-5094 or visit CPED Business Finance Programs.
Published May 21, 2007