New finance tool for business owners
12/01/2008
The City of Minneapolis offers a new finance tool, the Working Capital Guaranty Program, designed to help assist Minneapolis businesses secure financing through private banking institutions. The City provides extra assurance and support for business owners by providing a guaranty on financing.
How the program works: A private lender funds the loan, and the City of Minneapolis guarantees a portion of the financing, up to 80 percent of the first $50,000 and up to 50 percent of the remainder. Although there is no limit to the amount of financing provided by the bank, the City's maximum guarantee is $75,000. A business must be in operation for 12 months; technical assistance is available through the Metropolitan Consortium of Community Developers (MCCD) and may be required; the borrower must demonstrate the ability to repay the loan and be an acceptable credit risk; be in compliance with all city code/licensing and have no building or health code violations. Loans can be used for general business operations, working capital, production contracts, inventory or receivables. Guaranty terms and conditions also apply.
The program is administered by the City's Department of Community Planning and Economic Development, finance division. Contact Jessica Green at 612-673-5232 or Becky Shaw at 612-673-5066, or visit http://www.ci.minneapolis.mn.us/cped/working_cap_fact.asp.