Financing Programs

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Small businesses are integral to St. Louis Park’s economic prosperity. In order to support the thousands of small businesses that call St. Louis Park home, the city offers a variety of ways to help them start, grow and expand their enterprises. The city provides the following programs to help your business grow and prosper.
Revolving Loan Fund

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.

Example
Total project cost $500,000
Bank financing - $400,000
Owner equity - $50,000
GAP RLF financing $50,000

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 percent 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

Mike Mulrooney, CMDC
763.784.3337

Tax Increment Financing

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.

The City of St. Louis Park considers utilizing TIF funds to assist redevelopment projects in an effort to support the city’s economic development goals and strategies. These goals and strategies include facilitating projects that:

  1. Enhance the overall livability and economic viability of the community.
  2. Foster the expansion, redevelopment and revitalization of the city’s business areas through environmentally sustainable projects.
  3. Retain and foster the growth of the city’s existing high-quality businesses.
  4. Assist the startup, growth, diversification and expansion of the city’s small businesses.
  5. Recruit new businesses that are compatible with and complementary to the city’s existing businesses.

Resources

Property Assessed Clean Energy (PACE)

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

Julie Grove, St. Louis Park economic development specialist
952.924.2523
jgrove@stlouispark.org

Pete Klein, St. Paul Port Authority vice president of finance
pmk@sppa.com

Historic Walker Lake Business District Loan Program

The Historic Walker Lake business district loan program offers low-interest loans to new and existing businesses and property owners located in the Historic Walker Lake business district. 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 percent interest. (Minimum $10,000)
  • Loan term up to 10 years (set by the MCCD or private lender)
  • 10 percent owner equity required
  • 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 Historic Walker Lake business area.
  • 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

How to apply

Those that are interested in applying should first review the Historic Walker Lake business district loan program guidelines.

The application can be obtained from MCCD.

Contacts

To discuss loan program and obtain an application:

Rob Smolund, MCDD
612.843.3260, ext. 260

For more information:

Julie Grove
952.924.2523
jgrove@stlousipark.org

Contacts

Greg Hunt, economic development coordinator
952.924.2197
ghunt@stlouispark.org

Julie Grove, economic development specialist
952.924.2523
jgrove@stlouispark.org