FOR BUSINESSES
Small Business Financing
The St. Louis Park Economic Development Authority participates in a business friendly loan program called the Twin Cities Community Capital Fund (TCCCF).
About TCCCF
The TCCCF is a nonprofit economic development loan fund that offers customized, flexible financing solutions to fit most business needs. Its long-term, subordinated, fixed-rate loans, which will only be available in select Twin Cities communities, are made in partnership with local banks, other commercial lenders and member economic development organizations. When it works with business owners and their banker, the TCCCF's goal is to help put together a complete financing package that meets everyone's needs.
Equity or Cash Requirements:
- Loan applicants must demonstrate an acceptable level of project equity, with a minimum of 10% equity provided by the borrower. Subordinated debt within the same project financing may be considered as additional equity, subject to an intercreditor agreement. All other criteria will apply, including subordinate debt, when calculating debt coverage.
- Collateral Requirements:
- Loan collateral coverage must be at least 90% of the TCCCF loan amount on appraised value of assets, less all senior debt.
- TCCCF will consider the following collateral positions: first security interest, shared first security interest, subordinated security interest and shared subordinated security interest.
Debt to Worth:
- TCCCF will consider financing projects that have a tangible net worth ratio on an actual and proforma basis of no greater than 10 to 1 (10% project equity or greater). Each project shall be analyzed on its own merits and its ability to service both existing and new debt.
- TCCCF borrowers (real estate holding companies excluded) should have a tangible net worth of 5 to 1 or less, based upon their most recent financial statements and, on a proforma basis, reflecting the new proposed debt.
- Personal Guarantees:
- Personal guarantees will be required for all owners with 20% or greater ownership in closely held businesses.
Management Experience & Company Performance:
- The TCCCF will require that the project have capable, skilled management through experience or expertise in the applicant's industry, either through previous successful business ownership or through appropriate managerial support services. Borrowers having erratic or undocumented earnings, or borrowers having new and unproven management, will require more loan risk sharing by the TCCCF member originating the loan.
Repayment Ability:
- Applicants must demonstrate adequate historical cash flow showing trends that support debt service coverage of at least 1.1 to 1. Proforma financial cash flows must also support debt service coverage of at least one to one.
For more information, please go to www.tcccf.org
Loan Application
The Twin Cities Community Capital Fund loan application form may be downladed as either a Word Document or a PDF file as found by clicking on http://www.tcccf.org/loan_apply.cfm.
All loan inquiries and applications for TCCCF loans should be directed to St. Louis Park's TCCCF's member representative.
For details, contact Greg Hunt, Economic Development Coordinator at
- 952-924-2197
- ghunt@stlouispark.org
Revenue Bonds
The City of St. Louis Park will consider issuing private activity revenue bonds for eligible projects.
- (952) 924-2511
- bdejong@stlouispark.org
Small Business Assistance
- Small Business Administration - www.sba.gov/mn
- Counselors to America's Small Business - www.score.org
- Minnesota Small Business Development Center - www.mnsbdc.com
- St. Thomas Small Business Development Center - www.stthomas.edu/business/centers/sbdc/default.html
- Woman Venture - womenventure.org
Fire Sprinkler Funding
The City of St. Louis Park offers an incentive program to help businesses retrofit their buildings with automatic sprinkler systems. Under this program, the city pays for the installation, and the property owner has up to ten years to repay the city via special assessment. Assessments are paid twice a year with real estate taxes; the interest rate reflects the two year U.S. Treasury bill rate plus 1 percent.
- (952) 924-2171
- csmith@stlouispark.org