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Financing Programs

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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
โ€“$400,000
Owner equity (10%)
โ€“$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 โ€“ $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


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 multi-family 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 Authorityvice president of finance, pmk@sppa.com