Open to Business Financing Services

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Open to Business (OTB) provides the following loan products through the Metropolitan Consortium of Community Developers (MCCD).

Loan Packaging/Facilitation

Open to Business advisors can assist potential borrowers with the preparation of business plans, cash flow and other financial projections, and loan application materials. OTB advisors can assist entrepreneurs in identifying borrowing needs and accessing community lending programs that provide favorable terms and conditions for small business borrowers. They work with businesses and entrepreneurs to help them find the financing that best meets their unique needs.

Loans for New and Emerging Businesses

Direct loans aimed for a variety of business purposes, including inventory, working capital, asset and equipment purchases, and startup costs. Typical loan terms of 3-5 years, loans sizes up to $25,000 for retail/service businesses, or $50,000 for manufacturing businesses. Loans are targeted at startup and early stage businesses that cannot secure any or all of their financing from traditional commercial lenders.

Loans for Second Stage and Growing Businesses

Direct loans aimed for a variety of business purposes, including inventory, working capital, and asset and equipment purchases. Loans are done in partnership with a bank or other lender, with rate and size determined on a case-by-case basis.

Real Estate Participation Loans

MCCD loans in partnership with private lenders to provide gap financing for real estate acquisition projects – including projects financed through the U.S. Small Business Administration's 504 loan program. MCCD’s rate is affordable and MCCD will offer terms up to 10 years (though amortizations may be longer).

Real Estate Acquisition Financing

MCCD, in partnership with private lenders, provides permanent term financing for commercial real estate acquisition – up to 90 percent of the property’s appraised value. MCCD will provide up to 40 percent of the appraised value, with the bank providing 50 percent and holding first secured position. MCCD’s rate is affordable and MCCD will offer terms up to 10 years (though amortizations may be longer).

Transactional Financing

MCCD provides short-term loans for businesses whose cash flow cycle inhibits them from making regular monthly loan payments. Transactional loans are often used by construction contractors who have received or about to receive a construction contract with a community agency. MCCD can provide up front financing to cover the cost of labor and material associated with the contract. When the work on the contract is completed, the contracting agency issues a two-party check to cover the completed work, payable to MCCD and to the contractor. Larger loans are also available for businesses with performance bonds and escrow payment arrangements.

For more information, contact:

Rob Smolund
Enterprise Facilitator
612-789-7337, ext. 11

For more information about the Open to Business program, visit opentobusinessmn.org.