12-14-1994 - Laserfiche WebLink

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1 Siffit r: b Lit,it-Q., I a -9 _� 1: Todays business briefin 116. 1 Regional news . • ; MCDA puts owm money I 1 into loan p ro ram i Popular program for small businesses i becomes self-supporting for the first time • By Dee DePass loans will be distributed to local • 1 Staff Writer businesses. That compares with the $1.3 million appropriated in 1994, The Minneapolis Community De- $640,000 of which came from the 1 velopment Agency will add Minneapolis City Council. • $300.000 to its 2 Percent Loan Pro- • gram without hitting up the City Thirty-two loans were issued this Council for the extra money, year and 12 more are expected to • • MCDA officials said. close in the next three weeks. The popular program, targeted at MCDA's program leverages money ' small businesses needing equip- from a host of participating private ment or building repairs, is getting lenders. The MCDA provides half the funding increase because of a of a business' total loan request — rash of recent loan repayments that up to $30,000 — at the 2 percent are being recycled. interest rate. Remaining funds are provided by local banks at the "The program has become very prime rate. self-supporting," said Dawn Ha- gen, MCDA spokeswoman. "Typi- In the last four weeks more than cally the City Council has given us four Minneapolis companies were money for loan purposes. And the awarded 2 percent loans. Video • administration expenses come production firm Blue Moon Pro- from the fees generated from bond ductions received $42,900 to buy • issuances." video equipment. Riverside Bank participated on the loan with the But because of"big dollars" being MCDA. The pair also lent repaid, the December cash injec- $157,000 in relocation expenses to tion and all of 1995's funding Nazareth Delicatessen. Camden marks the first time the MCDA Auto Service received $60,000 program will be completely self- from Northeast State Bank and the sufficient since the program's in- MCDA. ception in 1988, Hagen said. MCDA's program participants also • , But with self-sufficiency comes a include Norwest Corp., First Bank dramatic drop in total funds System, Firstar, First National available. Bank of the Lakes, Franklin Nation- al Bank and Marquette Capital In 1995, $750,000 in 2 percent Bank.