The City of Minneapolis is seeking input on the re-establishment and re-structure of the Real Estate Acquisition Loan Program (REP), formerly the Capital Acquisition Loan Program (CAL). Please submit your comments by Monday, May 14, 2012 via e-mail to Nila McDonald, Economic Development Specialist, Business Finance, Department of Community Planning and Economic Development (612) 673-5189. If you or your group would like to meet to discuss the proposed guideline changes or if you have any questions, please contact Nila McDonald.
The City of Minneapolis currently supports business financing assistance to businesses and entrepreneurs through various programs and contracts administered by the Department of Community Planning and Economic Development. The new guidelines (see attached) changes the old Capital Acquisition Loan (CAL) Program, established in 1998, to the REP and will allow this program to be available once again for small business owners to purchase or relocate to a property in which to operate.
The minor change to the guidelines from the CAL Program is that the City will now directly fund 5% of loan rather than fund a default reserve of 5-20% on each loan such as was the case with the CAL Program. The 5% will be in the form of a loan to the business and repaid to the City at market rate over the term of the loan. The loan will be secured by a shared 2nd position with the Metropolitan Consortium of Community Developers.
The proposed new guidelines can be viewed by clicking here.