The City of Richfield Housing and Redevelopment Authority (HRA) and the Metropolitan Consortium of Community Developers (MCCD) are part of a joint venture called Open to Business Program. The Open to Business Program fosters small business growth and development in Richfield.
Open to Business Program Offers:
Financial Assistance: Loan Packaging/Facilitation
The Richfield HRA along with the MCCD staff can assist potential borrowers with the preparation of business plans, cash flow and other financial projections and loan application materials. Our staff can assist entrepreneurs in identifying borrowing needs and accessing community lending programs that provide favorable terms and conditions for small business borrowers. We work with our clients to help them find the financing that best meets their own unique needs.
Loans for New and Emerging Businesses
Direct loans from MCCD for a variety of business purposes, including inventory, working capital, asset and equipment purchases, and start-up costs. Typical loan terms of 3-5 years, loans sizes up to $25,000 for retail/service businesses, or $50,000 for manufacturing businesses. This program is targeted to start-up early stage businesses that cannot secure financing from traditional commercial lenders.
Loans for Second Stage and Growing Businesses
Direct loans from MCCD aimed for variety of business purposes, including inventory, working capital, and asset and equipment purchases. Loans are done by participating 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 Small Business Administration (SBA) 504 program. MCCD's rate is affordable and MCCD will offer up to 10 years (though amortization may be longer).
Real Estate Acquisition Financing
MCCD, in partnership with private lenders, provides permanent term financing for commerical real estate acquisition-up to 90% of the property's appraised value. MCCD will provide up to 40% of the appraised value, with the bank providing 50% and holding first secured position. MCCD's rate is affordable and MCCD will offer terms up to 10 years (through amortizations may be longer).
Short term MCCD 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.
Visit www.opentobusinessmn.org for more information on starting or expanding a business to put the experts on your side.
ARRANGE A MEETING
You can meet with Rob Smolund, Business Advisor, of Open to Business, the fourth Wednesday of each month for a walk-in consultation from 9 a.m. to 11 a.m.at Richfield Municipal Center, Community Development. If you can not make this time contact Rob Smolund to schedule an appointment.
Rob Smolund, Business Advisor
3137 Chicago Ave.
Minneapolis, MN. 55407
Ph: 612-789-7337 Ext. 260