The purpose of the CMDC Initiative Fund is to encourage private investment, create jobs and promote economic development in certain Twin City metropolitan communities. The program works by providing incentive financing for new and expanding businesses.
Most businesses and industries are eligible if they are located or will locate in the cities of Minneapolis, St. Paul, Anoka, Blaine, Bloomington, Brooklyn Center, Brooklyn Park, Columbia Heights, Crystal, Fridley, Hopkins, Lauderdale, Lexington, New Hope, Osseo, Richfield, St. Anthony, St. Francis, St. Louis Park, Spring Park, South St. Paul and West St. Paul.
All projects must have a private financing match.
Financing is available for land and buildings, machinery, equipment and working capital.
CMDC currently has a $150,000 lending limit depending on funding availability.
In most cases at least 50% of total project costs must be privately financed through owner equity and other lending sources. Most applications approved for funding have at least a 50% private financing match.
The interest rate will be a function of the risk associated with the loan and project. Rates range from 2% and prime plus 4%.
For projects involving real estate the maximum term is 20 years. Loans for machinery and equipment have a maximum of 10 years.
