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Small Business Financing


Small Business Financial Resources

updated: Friday, April 21, 2017

Business Financing
St. Louis Park is committed to assisting the establishment, growth and expansion of local businesses.   Listed below are the business financing programs available to St. Louis Park businesses:

St. Louis Park Revolving Loan Fund
The St. Louis Park Revolving Loan Fund (RLF) provides local businesses with gap financing in conjunction with commercial lending to enable local and area businesses to grow and expand their enterprises within St. Louis Park. 

What is Gap Financing?
This program provides loans to businesses that cannot meet their entire financing needs through conventional sources of financing from banks and other financial institutions.  RLF financing is available to “fill the gap” between traditional private financing, owner equity and a project’s cost.

Total Project Cost            $500,000
Bank Financing                  -$400,000
Owner Equity (10%)        -  $50,000
Gap RLF Financing               $50,000

Who can apply?

  • “For-profit” new and existing businesses located in St. Louis Park
  • Women, minority and veteran-owned businesses are encouraged to apply

Financing Terms:
Loan size and Interest Rate

  • $50,000-$200,000
  • Fixed interest rate

Types of Assets Financed/Eligible Uses

  • Fixed assets
  • Property Acquisition
  • Building Construction
  • Leasehold Improvements

Machinery/equipment up to 10 years
Land/building acquisition up to 20 years
New construction/renovation up to 20 years

10% owner equity investment

Collateral (one or more of the following)

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

Wage and Job Goals
Preference will be given to projects that retain existing jobs and/or create new jobs

Application Review

  • Applicants must first contact a primary lending agency to determine financial need
  •  Meet with EDA and CMDC staff
  • Complete and submit RLF application
  • CMDC reviews, evaluates and makes a recommendation on application
  •  EDA takes final action

Application link

For more information, contact Mike Mulrooney at Central Minnesota Development Company (CMDC) at 763-784-3337. 

PACE-Property Assessed Clean Energy
Green Business? Looking to make energy improvements? Property Assessed Clean Energy (PACE) is an innovative way to finance energy efficiency and renewable energy upgrades to buildings.

What is PACE?
A new program in St. Louis Park through a partnership with the St. Paul Port Authority (SPPA) that provides funding for energy efficiency and renewable energy upgrades to buildings, from smart energy efficiency upgrades to roof-top solar power systems.

  • 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

Who can apply?
Commercial, industrial and multi-family residential property owners.

How does it work?
Building owners who use PACE financing for their energy improvements pay back the financing through property taxes, as a voluntary special assessment.

For more information, contact Julie Grove, Economic Development Specialist at, phone 952.924.2523 or Pete Klein, Vice President of Finance St. Paul Port Authority, at

Open to Business Lending

The City of St. Louis Park is a partner with the Metropolitan Consortium of Community Developers (MCCD) in the Open to Business Lending program which offers free business advisory services to St. Louis Park businesses and residents.  The following loan products are provided by MCCD:

Loans for New and Emerging Businesses: Direct loans aimed for a variety of businesses purposes, including inventory, working capital, asset and equipment purchases, and start-up costs. 

Loans for Second Stage and Growing Businesses: Loans greater than $50,000 are targeted at businesses that have been operating for several years and need financing to grow.

Gap Financing for Real Estate:  Loans in partnership with private lenders to provide gap financing for real estate acquisition projects. 


Other Small Business Financial Resources
The following are links to local organizations that specialize in providing financial assistance to businesses in the Twin Cities area:

African Development Center (ADC)
ADC provides training, technical assistance and commercial financing to Minnesota entrepreneurs. 

Asian Economic Development Association (AEDA)
AEDA works with business owners to start and grow their businesses by providing business planning, training and workshops, and loans. 

CMDC Business Financing
CMDC assists businesses with their business financing needs. They promote economic development by cultivating a financing environment that allows Minnesota small businesses to grow and prosper. To fulfill this mission, CMDC provides business loans and financing services to businesses and bank lenders. 

DEED-Department of Employment and Economic Development (DEED)
Whether it’s to startup, operate or expand, DEED has business financing programs designed to help companies retain jobs, and create new high-quality jobs. 

Minnesota Business Finance Corporation (MBFC)
Minnesota Business Finance Corporation (MBFC) is a private not-for-profit that originates SBA 504 loans for small businesses across Minnesota. 

Minnesota Center for Energy and Environment (MNCEE)
CEE offers low-interest financing for energy improvements for Minnesota businesses and nonprofits for rehabilitation and energy efficiency projects. Financing options include revolving loan pools, interest rate buy-downs, loan deferrals, forgivable loans and grants. 

Minnesota Trade Office (Department of Employment and Economic Development)
Export Assistance for Small Business (STEP). The STEP program provides financial and technical assistance to qualifying Minnesota small businesses with an active interest in exporting products or services to foreign markets.

Metropolitan Economic Development Association (MEDA)
MEDA offers working capital loans to customers that need financing which might not be available through traditional lending resources. 

Neighborhood Development Center (NDC)
NDC is a non-profit, community development financial institution that provides flexible, risk tolerant loans, Sharia-compliant financing and other financial tools for start-ups and existing businesses. 

Small Business Administration (SBA)-Financial Assistance
SBA provides a number of financial assistance programs for small businesses including 7(a), 504 and disaster assistance loans. They have been specifically designed to meet a business’s key financing needs including the need for debt financing (loans), equity financing (investment/seed money), and surety bonds.

SPEDCO is a nonprofit certified development company dedicated to helping Minnesota small businesses obtain financing for job creation or business expansion. SPEDCO provides long-term, fixed-rate loans through the SBA 504 Loan program and 7(a) loan packaging consulting services.

St. Paul Port Authority
St. Paul Port Authority provides business capital needed for metro area companies to expand, contributes to equipment financing, or provides advice on getting local lenders to serve a company's needs. The Trillion BTU Energy Efficiency Loan Program is a revolving loan program offered through the St. Paul Port Authority that leverages public and private money to help Twin Cities businesses make improvements to lower their energy costs. 

WomenVenture is a U.S. Small Business Administration loan provider offering loans up to $50,000 to qualified borrowers to launch or grow small businesses.

Twin Cities Metro
Twin Cities Metro is a nonprofit certified development company that stimulates the growth of small businesses by providing access to SBA loan programs. It partners with business owners and financial institutions throughout Minnesota.





More Links

St. Louis Park City Hall
5005 Minnetonka Blvd.
St. Louis Park, MN 55416
Phone: 952.924.2500 Email: