Ready for Rail Forgivable Loan

Purpose:

To provide a modest safety net for businesses that show a loss in sales due to the construction of the Central Corridor Light Rail Transit Line. The forgivable loan may be used for basic business expenses, including payroll, inventory, rent/mortgage, utilities, taxes, marketing, and insurance.

Who qualifies?

For-profit small businesses with no more than $2 million in annual gross sales that:

• Are independently owned (with four or fewer locations)
• Are located on the Central Corridor Light Rail Line (or within one block of the construction zone)
• Have been at their current Central Corridor location for one year or more
• Are focused on retail services (selling products or services directly to the consumer, including restaurants)
• Have experienced a decline in revenue due to the construction of the Central Corridor Light Rail Line

Forgivable loan amount:

Up to $20,000. Loan amounts will depend on demand and demonstrated loss of revenue.

Structure and terms:

Distributions will be structured as 0% loans that will be forgiven at the rate of 20% for each year the business stays on the Central Corridor Light Rail Line (Loan is 100% forgiven after five years). Loans will be five-year repayable obligations for the business owner if forgiveness terms are not met. The loan balance will be payable upon the sale of the business or its relocation from Central Corridor.

When to apply:

Forgivable loan applications may be submitted 60 days or more after construction has started in your immediate area.

How to apply:

In Saint Paul

•      Download application 
•      Complete the application, provide all the requested documents and forward your full application by mail or deliver to Neighborhood Development Center at 663 University Avenue, Suite 200, Saint Paul, MN 55104
  •       Contact Neighborhood Development Center (NDC)
    • Phone: 651-379-8118
    • Email: R4Rforgivableloanprogram@ndc-mn.org
    • Web: www.ndc-mn.org/ReadyForRailForgivableLoan
    • NDC will begin administering loans immediately
•      Attend an information session at the Central Corridor Resource Center at 1080 University Avenue, Saint Paul, MN (parking available in lot), as follows:
•  

No more workshops are being held at this time.

In Minneapolis

•      Download application
•      Completed applications may be dropped off in person at the following location:

                    Metropolitan Consortium of Community Developers (MCCD) 

                    3137 Chicago Avenue, Minneapolis, MN 55407

• Contact Iric Nathanson of Metropolitan Consortium of Community Developers (MCCD)

- Phone: 612-789-7337 x14

- Email: inathanson@mccdmn.org

- Web: www.mccdmn.org

Ready for Rail Business support and services:

Prepare your business now, before construction starts. For those businesses along the Central Corridor Light Rail Line between Hamline and Rice Street, small business preparation resources and support are available. This assistance is designed to help you:

•      Know the details of construction plans and how to maintain access to your business
•      Get the most benefit from your financial record keeping and reports – once completed the records can be used to establish the financial impact of construction on your business
•      Select free training and services that help you manage your business
•      Set a goal and plan for saving money before construction starts

For more information about the business support and resources available visit: www.readyforrail.net

Call the construction hotline with construction related comments or to report an incident: 651-602-1404