The 2% loan program offers low-interest loans to new and existing businesses and property owners located in St. Louis Park. The program aims to make it more affordable for small businesses to invest in this area.

How the program works

• The Metropolitan Consortium of Community Developers (MCCD) or a private lender provides half of the loan amount at market rate
• The St. Louis Park Economic Development Authority matches the funds, up to $75,000 at 2% interest (minimum $10,000)
• Loan term up to 10 years (set by the MCCD or private lender)
• Applicants must meet certain credit requirements
• Loan must be repaid
• Applicants must meet with an Open to Business advisor throughout the term of the loan for continued business counseling

Who can apply

• All businesses located within the City of St. Louis Park
• Applicant may be individual owners, partnerships, corporations, tenant operators, nonprofit organizations (on a case-by-case basis) or contract for deed partners
• Leaseholders must provide written permission of the property owner

What can loan funds be used for?

• Purchase and/or renovation of a building
• Building construction
• Interior improvements
• Lighting, windows and doors
• Roofing, plumbing and electrical
• Mechanical systems and air conditioning
• Sustainable building improvements
• Masonry repairs and other façade improvements
• Repairing or replacing of cornices, entrances, doors, windows, decorative details and awnings
• Architectural design services for plans and specifications
• Parking lots, including lighting, surfacing and landscaping
• Building identification/signage
• Handicap access improvements
• Streetscape costs not financed by special assessment
• Purchase of machinery and equipment
• Leasehold improvements
• Installation of a fat, oil, and/or grease interceptor system ("grease trap")

How to apply

1. Before applying, review the loan program guidelines to make sure your business is eligible.
2. Request an application from the Metropolitan Consortium of Community Developers (MCCD) by contacting:
        Luis Rodriguez , MCCD
        612.843.3269
        Irodriguez@mccdmn.org
3. After applying and if you are eligible, you will be contacted by MCCD. 

You may also contact the St. Louis Park Community Development Department at 952.924.2575 for additional information.

The Advance program is a financial assistance program to help with the establishment or expansion of small commercial businesses in St. Louis Park. Under the program, qualified small businesses may receive forgivable loans up to $10,000 to assist with hard costs related to opening a new commercial location, expanding into a larger space or acquiring a commercial property for the first time.

The program also provides down payment assistance to businesses acquiring their first commercial property.

The city's economic development authority encourages all eligible St. Louis Park small businesses to apply for assistance under the program, especially those owned or managed by women, Persons of Color or Indigenous, or veterans.

Funding criteria

• Maximum loan amount: $10,000
• Loan funds must be matched one-to-one.
  • Example: To be eligible for the maximum loan of $10,000, the applicant must provide evidence of having paid at least $20,000 in expenses for eligible program uses.
• Loans will be 0% interest over a one-year term.
• Assistance provided in the form of a forgivable loan to applicants.
• Disbursement of funds would be tied to specific eligible uses of funds, specific agreed upon outcomes and other terms outlined in a loan agreement.
• Projects must be completed by Dec. 31, 2024.

A total of $200,000 has been allocated to this program. Loans will be provided until program funding is exhausted.

Who can apply?

• New or existing St. Louis Park small businesses that lease a new, vacant commercial space or acquire a commercial property for the first time in St. Louis Park.
• Acquisitions must be for a first-time purchase of a commercial property
• Businesses that employ 20 full-time equivalent employees (FTE) or less
• Sole proprietors
• Businesses must have no more than $1 million in annual gross revenue in the prior year

What can funds be used for?

• Building/leasehold improvements
• Commercial building alteration, renovation or expansion construction costs
• Lighting, window and door improvements
• Roofing, plumbing, electrical and sprinkler system repair or replacement
• HVAC system repair or replacement
• Water heater/softener repair or replacement
• Exterior facade improvements, including disabled-accessible improvements
• Building identification/signage (must be permitted)
• First-time commercial property acquisition

How to apply

1. Review program guidelines

Before applying, review the Advance Program guidelines to make sure your business is eligible.

2. Meet with program advisor

After you review the guidelines, schedule a meeting with the program administrator, Greg Hunt, to discuss the project. View contact information below.

3. Complete application

If your project meets the eligibility requirements, complete the Advance Program application.

Submit completed application and required documents by email or mail.

1. Email: send to Greg Hunt at ghunt@stlouisparkmn.gov
2. Mail: mail to
   
   City of St. Louis Park
   Greg Hunt
   5005 Minnetonka Blvd.
   St. Louis Park, MN 55416

Contact

For more information or to schedule a meeting to discuss your business, contact:

Greg Hunt
952.924.2197
ghunt@stlouisparkmn.gov

Climate Champions

Climate Champions is the City of St. Louis Park’s energy efficiency assistance, cost share and recognition program. Participating businesses will receive a free, whole-building energy assessment, and will be eligible for cost share funds. The cost share will match 50% of eligible utility rebates, and businesses located in certain neighborhoods or those participating in the Efficient Building Benchmarking program may qualify for a 75% rebate match. Eligible utility rebates include lighting, refrigeration, HVAC and more.

Learn more about the Climate Champions program.

CMDC business financing

Assists businesses with financing needs, including providing loans and financing services.

Grants.gov

A federal government website about grants and how to apply for them as well as a listing of various grant opportunities for businesses and nonprofits. Some of the grants are in specific niche areas or targeted toward specific technologies. 

Launch Minnesota 

Provides assistance to accelerate the growth of startups by offering grants, tax credits, educational programing and a statewide network.

Minnesota Business Finance Corporation (MBFC)

Originates SBA 504 loans for small businesses across Minnesota.

Minnesota Department of Employment and Economic Development (DEED)

DEED provides tools and expertise to help explore, start, manage and grow your business, including:

• Financing for businesses (11 programs offered)
• DEED financing programs
• To be notified when new DEED small business programs are announced, sign up here. 

Metropolitan Consortium of Community Developers (MCCD)

MCCD is a 503c3 nonprofit that provides business assistance and capital to entrepreneurs in the Twin Cities. MCCD advisors assist entrepreneurs to identify borrowing needs and accessing financing options.

Small Business Administration, Minnesota District

Offers numerous programs to help Minnesotans start, build and grow businesses, including small business planning assistance, free online training, loans and online business consulting.

SPEDCO

Dedicated to helping Minnesota small businesses obtain financing for job creation or business expansion. Provides long-term, fixed-rate loans through the Small Business Administration 504 Loan program and 7(a) loan packaging consulting services.

St. Paul Port Authority (SPPA)

Provides business capital needed for metro area companies to expand, contributes to equipment financing and provides advice on getting local lenders to serve a company's needs.

Twin Cities Metro

Provides access to Small Business Administration loan programs.

Through a partnership with the St. Paul Port Authority, Property Assessed Clean Energy (PACE) provides funding to commercial, industrial and multifamily residential property owners for energy efficiency and renewable energy improvements to buildings.

Building owners who use PACE pay the financing back through property taxes, as a voluntary special assessment.

Types of improvements

• Energy efficiency improvements: lighting, mechanical systems, window upgrades, temperature controls, HVAC equipment, new elevators, new insulation, etc.
• Renewable energy systems: solar water heat, photovoltaics, wind, geothermal electric, geothermal heat pumps, geothermal direct use
• Electric vehicle charging systems: new and upgraded circuits and related equipment to enable vehicle charging

Contacts

Pete Klein
St. Paul Port Authority Vice President of Finance
pmk@sppa.com

Ellie Rabine
Sustainability specialist
erabine@stlouisparkmn.gov

The St. Louis Park Revolving Loan Fund (RLF) provides gap financing along with commercial lending to local businesses.

What is gap financing?

If you can't meet your entire financing need through conventional sources like banks and other financial institutions, the RLF can help. RLF financing is available to fill the gap between traditional private financing, owner equity and total project cost.

Who can apply?

For-profit new and existing businesses located in St. Louis Park can apply for RLF financing. Women, minority and veteran-owned businesses are encouraged to apply. Preference will be given to projects that retain existing jobs and/or create new jobs.

Financing terms

• Loan Size: $50,000 – $200,000
• Fixed interest rate
• Up to 10-year term for machinery/equipment
• Up to 20-year term for land/building acquisition
• Up to 20-year term for new construction/renovation
• 10% owner equity investment

Types of assets financed/eligible uses

• Fixed assets
• Property acquisition
• Building construction
• Leasehold improvements

Collateral (one or more of the following)

• Promissory note
• Mortgage
• Security agreement
• Surety deposits for certain construction contracts

Application review process

• Applicants must first contact a primary lending agency to determine financial need.
• Meet with the St. Louis Park Economic Development Authority (EDA) and Central Minnesota Development Company (CMDC) staff.
• Complete and submit revolving loan fund application
• CMDC reviews, evaluates and makes a recommendation on application.
• EDA takes final action.

Contact

Tim Walker, CMDC
763.205.0323

In March 2022, the city council approved an updated special assessment policy that can be used to help finance energy efficiency improvements in commercial and multifamily buildings. It gives property owners the ability to have energy improvement project costs assessed to their property and deferred for up to 10 years. Tax exempt properties are also eligible for this program. Reach out to staff for current interest rates. 

This special assessment energy program is meant to address energy improvement projects that fall generally between $10,000 and $60,000. For larger projects, view information on the Property Assessed Clean Energy financing, also found on this page. For smaller projects, visit the Center for Energy and Environment's website.

Before participating in this program, be aware that you may qualify for free or low-cost energy improvements through federal, state or utility programs.

Eligibility requirements

• Must be either an existing commercial or multifamily property. Tax exempt properties are eligible. Any residential properties must have five or more units in order to qualify.
• Eligible energy improvements include heating, ventilation and air conditioning equipment; building envelope; and renewable energy systems.

How to apply

To apply, complete the online special assessment energy program application. Be prepared to submit at least three bids from qualified companies licensed by the State of Minnesota.

Once an application is received, the city will review it and contact the property owner within two to four weeks.

Note: In order to qualify for special assessment energy financing, the project must be fully approved by the city council prior to the start of any energy efficiency improvements.

Rules and procedures

The following are the program rules and procedures:

• Project costs include all costs required for design and construction of the improvement, including soft costs.
• Eligible energy improvements include heating, ventilation and air conditioning equipment; building envelope, including windows; and renewable energy systems.
• Property owner(s) will be responsible for contracting the installation and proper operation of the improvement.
• Property owner(s) must waive all rights to the public hearing and any appeal of the special assessment adopted by the city council.
• The amount to be specially assessed can't exceed the amount of the construction estimate, plus any city administrative or interest charges. The property owner will be responsible for any construction costs exceeding the amount of the construction estimate.
• Before the release of special assessment funds, the city must receive the administrative fee of 0.5% of the petitioned amount, with a minimum fee of $150 and a maximum fee of $750.
• If the property owner applying for the program requests the abandonment of the special assessment project, all city costs incurred up to that point will be reimbursed by the property owner.
• No payment will be made by the city for any installation until the work is completed, approved by the city and the assessment has been adopted.

Frequent asked questions

Is this assessment potentially transferable upon sale of the property?

The assessment does not need to paid in full if a property transaction occurs – only delinquent amounts must be made current. However, many buyers may prefer that the assessment be paid prior to closing.

Am I required to choose the lowest viable bidder?

No. Participants in the program can choose whichever bid they would like.

Can I pay a higher amount sometime to pay down the assessment sooner?

Yes. Assessments can be pre-paid before November 15 for previously certified assessments and by November 30 for new multi-year special assessments. Special assessments due to the City of St. Louis Park can be paid by mail or in person.

Contact

Ellie Rabine
Sustainability Specialist
erabine@stlouisparkmn.gov
952.924.2131

Tax increment financing (TIF) is a financing method authorized by state law that allows an authority to capture and designate most of the increased local property tax revenues from new development within a defined geographic area for a specified period of time. Tax increment revenues may be used for various qualifying public purposes such as redeveloping blighted properties, remediating contamination, and constructing public infrastructure as well as creating employment opportunities and affordable housing. The main objective of tax increment financing is to encourage certain types of development or redevelopment that would not normally occur without such assistance.

Visit Tax Increment Financing more information on how TIF is used St. Louis Park