What are City of Minneapolis Two-Percent Commercial Corridor/Commercial Nodes Loans?
Two–Percent loans provide financing to small Minneapolis businesses (retail, service or light manufacturing) to purchase equipment or to make building improvements on commercial properties located in designated Commercial Corridors and Commercial Nodes. A private lender provides half the loan at market rate and the City provides the rest, up to $75,000 at 2-percent interest. The loan term is set by the private lender and can be up to 10 years. Bank fees vary, but the City charges a 1 percent origination fee with a minimum of $150 due at closing. After the Business Finance Division of the Department of Community Planning and Economic Development receives an application with supporting financing information and a lender commitment letter, preliminary approval takes about one week, with up to two weeks to close the loan. The City cannot finance any work started prior to the loan closing.
