Open to Business Lending

Open to Business (OTB) provides the following loan products through the Metropolitan Consortium of Community Developers (MCCD).

Loan Packaging/Facilitation: Open to Business advisors can assist potential borrowers with the preparation of business plans, cash flow and other financial projections, and loan application materials.  OTB advisors can assist entrepreneurs in identifying borrowing needs and accessing community lending programs that provide favorable terms and conditions for small business borrowers.   They work with businesses and entrepreneurs to help them find the financing that best meets their unique needs.

Loans for New and Emerging Businesses: Direct loans aimed 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.  Loans are targeted at start-up and early stage businesses that cannot secure any or all of their financing from traditional commercial lenders.

Loans for Second Stage and Growing Businesses: Loans greater than $50,000 are targeted at businesses that have been operating for several years and need financing to grow.   Loans are done in partnership with a bank or other lender, with rate and size determined on a case-by-case basis.

Gap Financing for Real Estate:  Loans in partnership with private lenders to provide gap financing for real estate acquisition projects – including projects financed through the SBA 504 program. Our rate is affordable and we will offer terms up to 10 years (though amortizations may be longer).

Acquisition Financing for Real EstateThe program, in partnership with private lenders, provides permanent term financing for commercial real estate acquisition – up to 90% of the property’s appraised value. We will provide up to 40% of the appraised value, with the bank providing 50% and holding first secured position.  Our rate is affordable and we will offer terms up to 10 years (though amortizations may be longer).

Transactional Financing:  Provides short term 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.   We 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.

For more information about the Open To Business program, please contact Rob Smolund at 612-789-7337, ext 260 or rsmolund@mccdmn.org.

Link to 2012 Lending Report