Source of funds

Funding for your business is an important part of your license application. The City of Minneapolis will verify all money related to starting your business.

Overview

The funds for your business are an important part of your license application. The City of Minneapolis will verify all money related to starting your business. We cannot approve your license without the costs and sources of funds. Attach documentation for all sources of your financing. A copy of the Source of Funds document is part of your application packet.

Tax records (required)

  • Attach two years of 1040 federal tax forms for each person providing funding or
  • Corporate tax records, if applicable.

Funds from savings, investments or corporate holdings (required)

  • Attach three months of bank statements that show the money is available in all three months
  • Alcohol Establishments must also attach three months of bank statements from one year earlier

Loans from a lending institution

  • Attach a copy of the loan closing document that shows the amount loaned. Include a copy of any promissory note or
  • If you are eligible for a loan when you receive license, attach a letter of loan amount. You must give us the loan closing document when it's completed.

Loans from individuals

  • If you receive a loan from friends or relatives, they must give us the same information listed above. This includes tax forms, savings account statements, or loan documents. 
  • If the lender is not an owner, you must give us a notarized statement stating the lender does not have an operational, financial or management interest in the business.

Landlord or construction financing

  • A landlord must give us the same information listed above. This includes tax forms, savings account statements, or loan documents. We can accept corporate account statements and
  • Attach a statement about payment terms.

Sample costs and funds reporting form (required)

Part I: Costs

Applicant's name: __________________________________Business name: __________________________________

Building expenses (lease, equipment purchases, down payments, asset agreement, etc.)

$__________________ for __________________________________

$__________________ for __________________________________            Subtotal $___________________

Construction expenses (upgrading cooking equipment, installation, remodeling, etc.)

$__________________ for __________________________________

$__________________ for __________________________________            Subtotal $___________________

Professional expenses (attorney fees, architect fees, consultant fees, etc.)

$__________________ for __________________________________

$__________________ for __________________________________            Subtotal $___________________

Start-up costs (insurance, license fees, inventory, etc.)

$__________________ for __________________________________

$__________________ for __________________________________            Subtotal $___________________

Other expenses (payroll, insurance, SAC charges, other)

$__________________ for __________________________________

$__________________ for __________________________________            Subtotal $___________________

Total costs for pursuing this license

Attach plans, leases, contracts, statements from vendors or credit institutions and other documentation you have to support the above figures.

Part II: Funds (example below)

Total Cost to Start the Business (As listed above.) $300,000
Savings Account Money: $100,000
Attached: Bank Statements from Jan, Feb, Mar 2013 and 2014

Bank Loan: $100,000
Attached: Loan Closing Documents from First Bank and Trust

Loan from Parents: $100,000
Attached: Stock Dividend Statement 2013 and 2014; Tax Records 2013 and 2014; Promissory Note: Notarized Statement of Loan Terms

Total: $300,000

Contact us

Business Licenses & Consumer Services

Community Planning & Economic Development

Phone

612-673-2080

Fax

612-673-3399

Address

Public Service Building 
505 Fourth Ave. S., Room 220
Minneapolis, MN 55415