Business loan programs are common in cities across the country, our local cities, counties, and regions are no different. They benefit both growing small businesses and established companies with incentives, guarantees, and benefits to business owners looking to relocate or expand their businesses. Often times, business owners are busy and may overlook these options due to not knowing about the programs, difficulty understanding the application process, and/or not having the time to research all the options available. This is where a good relationship banker at a community bank can provide additional benefits.
Curious where to go, here are some links to get you started:
- MN Department of Employment and Economic Development Financing Programs
- Minneapolis Loan and Grant Programs
- St. Paul Loan and Grant Programs
- The Metropolitan Consortium of Community Developers
Manufacturing firms tend to have the best prospects for grants and funds availability due to their historical labor needs; however, it does not mean that retail and service businesses should not review the programs available.
Let’s look at an example. A small retail/service business is looking to acquire new space in Minneapolis. It has located a site that it wants to put its business operations into but it requires an acquisition loan, improvements costs, and costs to equip the business for operation. The City of Minneapolis has some great options that work well with your lender in combination and in some cases no lender is required. For instance, one program available, as of November 2015, is a Two Percent Loan Program that matches a small business loan through a local financial institution dollar for dollar up to $75,000 depending on designated neighborhood commercial district. The 2% loan provides a large interest cost relief for many businesses as traditional financing generally would have higher interest rates and/or tightened loan terms. The funds provide many avenues to support the transaction costs and we highly recommend talking with your city economic development department to make sure there are no programs that have been overlooked.
Overall, reviewing your City’s programs and discussing directly with the City has the potential to strengthen an application on any additional financing needs and demonstrates your preparation and additional resolve to successfully manage your business.
In some cases your business may not need or qualify for these programs, but it is always good to review your business’s options. These programs can be paper intensive and take time to complete, so all factors in the business’s needs should be reviewed and considered. We also have a great Guide to Business Loans you can read to learn more about the process and options provided by the banking industry.
We have invested in expert people, systems, and industry knowledge that make us a market leader in a field often dominated by very large banks. If your Minneapolis/St. Paul Metro Area closely-held business, nonprofit organization, or real estate company could benefit from a bank that delivers specifically for you, please give us the opportunity to review your banking needs. We are committed to making our clients successful. Your success is our business!
Flagship Bank Minnesota is a Member FDIC and Equal Housing Lender.