Community Planning & Economic Development

Phone: (612) 673-5095
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Community Planning & Economic Development
Two-Percent Loans

What is the Two Percent Loan Program?

Two-Percent Loans provide financing to small Minneapolis businesses (retail, service or light manufacturing) to purchase equipment and/or to make building improvements. A private lender provides half the loan at market rate and the City provides the rest, up to $50,000 at 2 percent interest (up to $75,000 in designated neighborhood commercial districts). The loan term is set by the private lender and can be for up to 10 years. Bank fees vary, but the City charges a 1 percent origination fee with a minimum of $150 due at closing.

Terms and Conditions

Who is Eligible

Eligible Uses

How to Apply

Complete an online application here, or to request a printed application please call (612) 673-5072.

All programs and guidelines are subject to change without notice.
Online information from the City of Minneapolis at MinneapolisMN.gov/CPED

Last updated Sep 17, 2013