Alternative Financing ProgramThe Alternative Financing program provides small Minneapolis businesses (neighborhood retail, service or light manufacturing) an alternative financing to the interest-based system that is in accordance with Islamic law, or Sharia. The program provides financing to purchase equipment and/or make building improvements. A private lender provides half the financing at their rate of return, and the City provides the rest, up to $50,000, at a 2 percent rate of return. The term (up to 10 years) is set by the lender. Private lender fees vary, and the City charges an origination fee of 1 percent of the City’s principal amount with a minimum of $150, due at closing. After an application and a lender-commitment letter are received, preliminary approval takes about one week, with an additional two weeks to close the financing. The city cannot finance any work started prior to the closing. Who is eligible for the Alternative Financing Program?In the event program funds are not sufficient to meet all eligible applications, priority will be given to businesses unable to expand without the Alternative Financing, and to businesses 1) located in target areas of Minneapolis; 2) benefiting low- to moderate-income persons by creating jobs or improving services; 3) rehabbing or reusing a vacant structure; and 4) whose owner has a personal net worth less than $1 million. The Alternative Financing Program is available to Muslims and non-Muslims alike. All eligible applicants must:
How can the funds be used?All rehab work or equipment installations must meet Minneapolis city codes. Interior improvements
Exterior improvements
Production equipment(For businesses with no health, safety or building-code violations)
Contact informationFor more information, contact Becky Shaw at (612) 673-5066. All programs and guidelines are subject to change without notice. |
