Minneapolis entrepreneurs are getting a major boost as the city amps up its financial support for local business dreamers. The city's Ownership and Opportunity fund, also known as the Commercial Property and Development Fund, just got richer by $3 million, per the 2024 city budget announcement, aiming to provide forgivable loans for those bold enough to venture into commercial real estate in economically challenged areas.
According to KSTP, Jesse Ross, a Minneapolis commercial property owner and 2023 recipient of the program's generosity, is already putting his $700,000 award to good use. Ross said "The goal of the building is to make commercial rent affordable," especially for entrepreneurs of color in the northern part of the city. He added "I’m trying to find a way to leverage the playing field and use my building as a way to get to at least 51 percent women and people of color" and use his building as a stepping stone towards emphasizing property ownership among women and minorities.
Ross isn't alone in his quest. Since Mayor Jacob Frey launched the initiative in 2020, the program has handed financial lifelines to 22 business owners within Minneapolis. More than just a handout, these forgiven loans are seen as tools to empower local enterprises to not just survive but also thrive by eventually taking ownership of the very buildings they do business in.
The program's official website lays out the eligibility criteria in no uncertain terms. Applicants, ranging from individual owners to various legally recognized business organizations, must stand in good financial stead, demonstrate creditworthiness, and show the ability to shoulder any projected debt, aside from the support from the city's fund. Properties involved must comply with city zoning and be up-to-date on taxes and regulations, ensuring that the fund's good intentions translate into tangible community success.
The multifaceted fund covers a wide variety of costs. From purchasing land and buildings to exterior and interior repairs, HVAC systems, and even parking lot improvements, Minneapolis is staking a claim on its future by investing heavily in the present. With repayment terms stretching over 40 years, the program meticulously sets the stage for a generation of growth and stability that might just redefine the commercial landscape of this vibrant city.
