Small Business Lending & Reba-Free Financing
Neighborhood Development Center (NDC) provides access to credit for start-up and existing businesses that are unable to access traditional sources of capital. NDC provides financing up to $50,000 per business; the average loan size is $12,000. Alumni of the NDC Entrepreneur Training Program and other companies in NDC target neighborhoods that have been in business for at least one year are eligible to apply.
NDC takes an individualized approach to lending, working closely with entrepreneurs to understand their business needs, their long-term plans to grow and improve their business, the risks associated with their request, and the strategies they have in place to mitigate those risks. Each loan request is evaluated by an independent committee based upon the entrepreneur’s plan to develop their business and their demonstrated ability to mitigate identified risks.
NDC also offers Reba-Free Financing to meet the needs of the Muslim community. In Islamic law charging interest to rent money – which is called “reba” – is prohibited. NDC has received multiple awards for creating the first Reba-Free Financing program in the United States.
For more information, or if you are interested in applying for NDC financing, please contact:Brian Singer651email@example.com
Purpose & Outcomes
Neighborhood Development Center fills a gap in the Twin Cities' small-business finance market by providing access to credit for start-up and existing businesses that are unable to access traditional sources of capital, including conventional bank and Small Business Administration (SBA) loans. NDC often partners with local banks and other community lenders to assemble viable financing packages for individual businesses.
Since 1993, NDC has financed more than 480 companies with more than $7.1 million. According to a 2008 study by Wilder Research on the impact of NDC’s small business finance programs, of the businesses helped by NDC, 21% had increased their number of employees and 56% had increased their gross monthly revenues.