Business Development Fund Loans
The City has loan packages for small businesses who plan to grow and hire Minneapolis residents.
Eligibility and use
Who can apply for this loan
You can apply for this loan if:
- Is located in or moving into Minneapolis city limits.
- Provides full-time jobs that pay a living wage.
Most loan recipients:
- Have at least 20 employees at the time they apply.
- Expect to add 10 jobs within the first three years of the loan.
How you can use the loan
You can use the loan proceeds to pay for:
- Building improvements
- Production equipment
- Moving costs
- Working capital
Terms and conditions
Your private lender
- Sets the finance term.
- It can be up to 10 years.
- Lender fees vary.
City charges and requirements
- A one percent origination fee ($150 minimum) is due at closing.
- We charge the same interest rate as your private lender.
- You must sign a job linkage agreement.
City repayment guidelines
- You can repay up to 50 percent of the original principal amount of your loan through prepayment credits.
- If you move the business outside of the City your loan becomes due. You need to repay it it full.
Complete our common application for small business financing.