Small Business Resources

Grants and Loans

REDA offers West Side Businesses a range of technical assistance opportunities to assist with building rehabilitation, storefront improvements and micro loans for small business start-ups and expansions..

Currently, REDA offers the following opportunities for business owners who have interest in starting or improving their business and properties on the West Side of Saint Paul and in the District del Sol commercial corridor.

District del Sol Grant and Loan Program for Building Improvements

Currently, one main loan/grant program exists for business owners interested in improving their properties. To participate in this program, the business must fall within the boundaries of District del Sol.

District del Sol Boundaries

Businesses must fall within the primary boundaries of District del Sol.

The boundaries include:

Concord St. from Ada St. to Wabasha St.
Robert St. from Concord St. Wood St.
Wabasha St. from Concord St. to Congress St.

Eligibility

Must be a member of the Riverview Economic Development Association.

The design of any construction must fall in line with District del Sol Commercial Corridor Revitalization Program (CCRP) guidelines (formerly called the RCCRP guidelines).

Eligible Uses

Fixed Improvements

Rehabilitation

Expansion

New Construction

Ineligible Uses

Purchase

Working Capital

Non-fixed Improvements

Machinery and equipment

Grant Program for District del Sol Storefronts

District del Sol Small STAR Grant Guidelines

Purpose of the grants:

Small STAR Grants are designed to leverage capital improvement projects to commercial buildings in District del Sol using small grants.

Objectives of the District del Sol Small STAR Grants:

Stimulate increased private investment in commercial properties
Promote business expansions and attract new businesses to the area
Enhance the image of the area and increase the draw of customer traffic

Eligibility:

Open to all businesses in District del Sol who are members of the Riverview Economic Development Association (REDA).
The design of any construction must fall in line with District del Sol Design Guidelines.
The maximum grant is $5,000.

Eligible Uses:

Fixed Improvements
Rehabilitation
Expansion
New Construction

Ineligible Uses:

Purchase
Working Capital
Non-fixed Improvements
Machinery and equipment

Requirements:

The maximum grant award is $5,000 per business.
Grants are paid upon project completion.
Grants are at least a one-to-one match. For example, for a $6,000 project, REDA could possibly cover up to $3,000 of the total cost with grant.

Review Criteria:

Location in District del Sol
Amount requested and type of improvement
Long term physical viability of the building and/or long term District del Sol plans
Priority given to visible exterior improvements.

Project Administration:

REDA staff will administer all projects awarded. Staff will work with the recipient on the design, bidding, letting, and compliance requirements of the City of St. Paul.
At least 2 bids are required for each project.
Project must start within 6 months of approval or the award will be forfeited.

Application Process:

Submit application with project description, sketches, cost estimates, and financial materials.
Business Investment Committee will review applications.
REDA Staff will contact each applicant individually about approval.

Project Selection:

Projects will be reviewed by the Business Investment Committee, which is comprised of neighborhood partners, bankers, funders, city economic development staff and practitioners in community and economic development. Selections will be based on the criteria set forth in these guidelines. Please note that this is a competitive process and is available to all businesses within District del Sol. REDA reserves the right to reject applications for projects that do meet the meet the objectives stated at the beginning of this document or due to funding limitations. All decisions of the reviewing committee are final.

Storefront application <PDF>

Microloan Program for Business Assistance

West Side Business Growth FundThe West Side Business Growth Fund (WSBGF) exists to strengthen and grow the West Side business community by providing loans and technical assistance. This fund provides financial support for businesses that may not qualify for conventional financing or may need additional funds to complement bank financing. Since 1996, over $200,000 in loan fund dollars have been distributed to West Side businesses.

Loan Criteria:
· Maximum loan amount: $40,000.00
· Closing costs: 1% of loan value
· Filing fees: Actual costs incurred
· Interest rate: Market-rate (fixed or variable)
· Term: no more than 7 years (in line with depreciation)
· Business must operate at the same location for at least three (3) years

Potential Loan Uses:
1. Gap Financing
2. Working Capital
3. Fixed Assets
4. Commercial Improvements
5. Junior Mortgages for real estate purchase

Collateral:
1. Personal Guaranty
2. Equipment or other business assets
3. Equity requirements will depend on net worth, collateral and risk

Risk:
REDA will work with business owners who do not qualify for bank loans. Applicants must be actively and effectively addressing the causes of credit rejection issues. REDA will approach barriers to financing through technical assistance in business training and credit counseling.

Credit History:
The WSBGF requires a credit history of each applicant. Applicant must be willing to address past credit issues. Required Documentation:
1. WSBGF Loan Application
2. Personal Financial Statement
3. Written Business Plan
4. Credit Report
5. Three (3) years of tax returns (business and/or individual)
6. Financial Statements for three (3) previous years and interim Financial Statement (if existing business).
7. Monthly Income and Cash Flow Projections for one (1) year.

Loan Approval Process:
Once all required documentation has been received, the Business Investmnet Commitee will review the loan request. A commitment letter will be sent if and when the loan is been approved. If the application is denied, the applicant will also be notified. In most cases, notification will occur within thirty (30) days of receiving all required paperwork.