The economic inclusion purpose of this tool is to fill significant funding gaps by providing forgivable patient debt capital for commercial real estate development and acquisition in the city of Minneapolis, with a focus on economically challenged areas. CPDF provides developers and small businesses with patient debt capital on favorable terms to facilitate the completion of commercial real estate development and acquisition.
Terms and conditions
| Maximum Loan Amount: | The smaller of 33% of approved project costs or $7.5 million. Expected loan amount based on current fund pool: Between $400,00-to-$800,000-per-project. |
| Term: | 40 years |
| Interest: | 0% |
| Payments: |
Repayment of full principal balance due if one of the following events occurs:
|
| Debt Forgiveness: |
No debt forgiveness during term. At the end of the term principal balance forgiven if the borrower meets the following conditions:
Specific debt forgiveness terms to be approved during loan approval process. |
| Collateral: | Subordinated mortgage and or subordinated position in other collateral. |
Who is eligible
- Applicants may be individual owners, partnerships, corporations, cooperatives or any other legally recognized form of business organization in active, good standing with the Minnesota Secretary of State, located in or willing to relocate to the City of Minneapolis.
- Applicant must have the ability to service any projected debt obligations and be an acceptable credit risk.
- Applicant's property status must be up to City code or be brought up to code and exist as a conforming use or a legal non-conforming use under the City's Zoning Ordinances.
- All property taxes and assessments of subject property must be current.
- Subject property must fully comply with all applicable regulatory requirements.
- Applicant must have proof of ownership of the subject property or a valid proof of site control.
- Subject property must be within the City of Minneapolis.
- Applicants must demonstrate the ability to finance the project with other leveraged financing.
Eligible uses
- land and or building purchase
- hard construction costs
- construction-related fees and professional services
- exterior and interior repairs and improvements to buildings
- building components, including HVAC systems, plumbing, electrical, etc.
- façade improvements, including sign repair or replacement
- soft costs, including design services, building permits, energy audits, etc.
- parking lots, including lighting, surfacing and landscaping
- streetscape costs not financed by special assessment
- Streetscape costs not financed by special assessment
- Production equipment
- Equipment must be fixed
- Financing of computers are approved on a case-by-case basis
- environmental sustainability and green building features or techniques
How to apply
Download and review the Notice of Funding Availability for more details.
Interested parties should provide a brief description of their request and send it to Business Development Loans to request a meeting with a CPED staff member.
All programs and guidelines are subject to change without notice.