Planning and Economic Development (PED) provides gap financing to businesses that cannot secure sufficient conventional private or non-profit financing, but can demonstrate a capacity to repay loans.

The program is intended to enhance the ability of private lenders to finance small businesses and emerging entrepreneurs.

A majority of financing must come from sources other than the City or the Housing and Redevelopment Authority. For a loan guarantee, the HRA will guarantee up to fifty percent or $50,000 of a bank loan.

All loans and guarantees must be approved by the City’s Credit Committee, must have 1.1 to 1 minimum debt service coverage and must be secured by a minimum 1 to 1 collateral value. Most compliance requirements apply.

New and growing for-profit and non-profit businesses located in or moving to Saint Paul.

Purchase of real estate or equipment, rehabilitation, new construction, tenant improvements, working capital, industrial equipment, lines of credit, refinancing of a contract for deed and expansion, provided no cash is taken out.