The Alternative Financing program provides small Minneapolis businesses (neighborhood retail, service or light manufacturing) an alternative financing to the interest-based system that is in accordance with Islamic law, or Sharia. The program provides financing to purchase equipment and/or make building improvements. A private lender provides half the financing at their rate of return, and the City provides the rest, up to $50,000, at a 2 percent rate of return. The term (up to 10 years) is set by the lender. Private lender fees vary, and the City charges an origination fee of 1 percent of the City’s principal amount with a minimum of $150, due at closing.

Terms and conditions

• Applicant must repay the funds and be an acceptable credit risk
• All rehab work and equipment installation must meet Minneapolis city codes    
• Applicant must comply with the Minneapolis zoning ordinances             
• Must make efforts to hire Minneapolis residents by working with the City’s Workforce Coordinator
• Use contractors licensed in Minneapolis
• Proceeds cannot be used for billboard advertising
• The city cannot finance any work started prior to the closing

Who is eligible

• All businesses in the City of Minneapolis
• The applicant may be individual owners, partnerships, corporations, tenant operators or contract for deed partners.
• Businesses that benefit low-to-moderate income persons by creating jobs or improving service

Eligible uses

• Lighting
• Windows
• Walls, ceilings, floors
• Roofing
• Plumbing
• Electrical
• Mechanical Systems and Air Conditioning
• All work on the front and sides of business buildings facing public streets
• Cleaning, painting and staining of exterior surfaces
• Masonry repairs
• Repairing or replacing of cornices, entrances, doors, windows, decorative details and awnings
• Sign removal, repairing or replacement
• Architectural design services for plans and specifications
• Parking lots, including lighting, surfacing and landscaping
• Building identification
• Other items that are viewed necessary to complement the exterior of the building
• Building permits
• Energy audits
• Energy conservation and energy retrofits
• Handicap access
• Streetscape costs not financed by special assessment
• Production equipment
• Computers on a case-by-case basis only

How to apply

• Complete the application
  
  • If you need a paper application, call Jennifer Schultz.
• Return completed application to Jennifer Schultz.

All programs and guidelines are subject to change without notice.