Business Development Fund Loans

The City has loan packages for small businesses who plan to grow and hire Minneapolis residents.


Business Development Fund Loans are for manufacturing, industrial and distribution businesses located in Minneapolis.

The borrower earns prepayment credits for hiring Minneapolis residents.

Loan details

  • You must get a loan from a private lender for at least half of your total project costs.
  • The Business Development Fund Loan can match private lender funds up to $75,000.

You can combine these loans with Industrial Revenue Bonds, if needed.

Learn about Industrial Revenue Bonds

Eligibility and use

Who can apply for this loan

You can apply for this loan if:

Your business:

  • 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
  • Inventory
  • 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.

Learn about a job linkage agreement and prepayment credits

Person's hands typing on laptop.


Complete our common application for small business financing.

Contact us

Business Development Team

Community Planning & Economic Development





Public Service Building
505 Fourth Ave. S., Room 320
Minneapolis, MN 55415