Urban Initiative Loan Program

The Urban Initiative Loan Program assists minority-owned and -operated businesses and other companies that create jobs in low-income areas of the Twin Cities metropolitan area.

Eligible applicants must operate in one of the following targeted cities:

Terms and Interest Rates
The Urban Initiative Board has entered into partnerships with several local nonprofit organizations, which then provide loans and technical assistance to start-up and expanding businesses.

Each dollar of state funds must be matched by at least an equal amount of private funds. Generally, this match is provided in loan through the participating nonprofit partner.

The maximum total loan available through the program is $300,000. The state may contribute 50 percent of the loan up to $150,000. Interest rate is between 2 percent and prime plus 4 percent.

Terms are generally consistent with other sources of project financing. Each nonprofit has authority to determine specific interest rate and collateral requirements.

How to Apply
Nonprofit partners accept applications on an ongoing basis. Nonprofit partners include:

• African Development Center, 612-333-4772
• American Indian Economic Development Fund, 651-917-0819
• Central Minnesota Development Company, 763-784-3337
• Metropolitan Economic Development Association, 612-332-6332
• Milestone Growth Fund, 612-338-0090
• Minneapolis Consortium of Community Developers, 612-789-7337
• Neighborhood Development Center, 651-291-2480
• Riverview Economic Development Association, 651-222-3727
• SPARC, 651-488-1039
• WomenVenture, 651-646-3808

For more information, contact Bart Bevins at 651-259-7424 or toll-free at 800-657-3858.

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