Small Business Forgivable Fund is ready for business

June 21, 2011

Small businesses affected by light rail construction in the Central Corridor can now gain access to interest-free, forgivable loans to be used for working capital and current business expenses. Loans of up to $20,000 each are available through community development agencies in St. Paul and Minneapolis.
 
To qualify, a business must be for-profit with no more than $2 million in annual gross sales and:

  • Is independently owned (with four or fewer locations)
  • Is located on the Central Corridor Light Rail Line (or within one block of the construction zone)
  • Has been at its current Central Corridor location for one year or more
  • Is focused on retail services (selling products or services directly to the consumer, including restaurants)
  • Has experienced a decline in revenue due to the construction of the Central Corridor Light Rail Line

The loans will be interest-free and forgiven in equal installments over five years if the business can certify that its business is operating on the Central Corridor each year. No loan payments will be required as long as the borrower continues to meet the forgiveness provisions.
 
To apply in St. Paul
1.     Download an application 
2.     Complete the application, provide all the requested documents and forward your full application by mail or deliver to Neighborhood Development Center
3.     Attend an information session at the Central Corridor Resource Center at 1080 University Avenue, Saint Paul, MN (see schedule) [PDF of Ready For Rail Loan Flyer]
 
Neighborhood Development Center (NDC) will begin administering loans immediately.
For questions, contact:
NDC
663 University Avenue, Suite 200, Saint Paul, MN 55104
651-379-8118
R4Rforgivableloanprogam@ndc-mn.org
www.ndc-mn.org/ReadyForRailForgivableLoan
 
To apply in Minneapolis
1.     Download an application
2.     Complete the application, provide all the requested documents and drop off full application to Metropolitan Consortium of Community Developers (MCCD)

Metropolitan Consortium of Community Developers (MCCD)will begin administering loans on June 27, 2011.
For questions, contact:
MCCD
3137 Chicago Avenue, Minneapolis, MN 55407
612-789-7337 (David Chapman)
dchapman@mccdmn.org
www.readyforrail.net
 
The total fund of $4 million in forgivable loans and grants is made possible through contributions from the Metropolitan Council, City of Saint Paul and the Central Corridor Funders Collaborative.