Business Assistance
Programs in South St. Paul
Industrial Development Revenue Bonds (IRBs)
- Fixed rate, long term, equal or below market rate financing to help
industrial businesses with:
* new project land acquisition and construction
* additions to existing facilities
* purchase and renovation of an existing structure
* purchase of production equipment
504 Loan Program - Long term, fixed rate
financing (generally 1 to 2 points below market rates) for up to 90%
of the necessary capital to help industrial business with:
* purchase of land and buildings
* rehabilitation and construction
* leasehold improvements
* purchase of machinery and equipment
SBA 7 (a) Loan Program - Assist manufacturing
firms with fewer than 250 employees and wholesale firms with annual
sales of less than $9.5 million in obtaining loans from banks and
other lending institutions by guaranteeing 90% of the principal and
interest; funds can be used for:
* working capital and inventory
* machinery and equipment
* purchase of land and buildings
* land acquisition
* renovation and construction of facilities
Tax Increment Financing - The South St.
Paul Housing and Redevelopment Authority (HRA) administers the Concord
Street Redevelopment Project which encompasses approximately 200 acres
of land including property designated in the Project Gemini target
area. Under this program the HRA will consider incentive financing
proposals to stimulate redevelopment, enhance local tax base and create
employment opportunities. Project proposals are reviewed on a case
by case basis with priority given to value added manufacturing firms
that leverage significant private investment.
Revolving Loan Fund - The South St. Paul
HRA administers a revolving loan fund designed to aid expanding companies.
These proceeds may be used for leasehold improvement, machinery and
equipment or construction of new facilities. The maximum loan amount
is $50,000 with preference given to firms that demonstrate strong
private investment and job creation. Terms and rates are negotiable
and designed to meet the needs of the company.
Commercial Rehabilitation Loan - The South
St. Paul HRA operates a loan program designed to encourage the rehabilitation
of existing facilities. Under this program, business/developers may
borrow up to $15,000 to upgrade/redevelop structures. This program
requires a 1:1 match of private funds.
South St. Paul Futures - A private, for
profit, development corporation that will consider fixed asset loans
of up to $50,000 to credit worthy firms that are prepared to make
substantial capital investment in operations based within the city.
Professional/Technical Assistance - The
South St. Paul HRA will provide professional and technical assistance
to any firm that demonstrates a willingness and ability to undertake
a significant development project within the community. Trained staff
and consultants will work with a business to analyze project requirements
including planning, zoning, building needs, legal, finance, marketing
and related issues. As a part of this service the HRA may work with
the client to develop appropriate applications/requests to state or
federal agencies.
Project Gemini - Manufacturing or wholesale
trade businesses that expand or locate operations within a certain
portion of the South St. Paul industrial area may be eligible to receive
reduced electric rates for five years through Project Gemini. The
discount is based upon the demand charge according to the following
schedule:
Year Reduction
1-3 50%
4 30%
5 20%
South Saint Paul