Purpose of the Program
The purpose of this program is to assist City of Saint Paul Section 3 businesses or individuals grow and thrive in the local marketplace. The city has created this loan fund to provide short-term financing to eligible Section 3 businesses participating in Saint Paul construction contracts.
Loan Structure
- 0% interest loans.
- Loan term is not to exceed 2 years.
- Loan amounts from $3,500 to $25,000.
- Low closing costs: direct recording costs and filing fees only.
- Applicants are eligible for multiple Section 3 loans. However, no more than one loan can be outstanding at any time.
Program Requirements
Qualification Criteria
- All applicants must be City of Saint Paul Certified Section
3 Business concerns and listed on the City of Saint Paul
Section 3 Business List. Applications will be accepted
from businesses working toward certification, but loans
will not be funded until the certification is complete.
- Applicant provides services closely related to the
construction industry or construction related professional
services (architectural, engineering, property
management, legal property maintenance, etc.).
- All funds must be linked to securing Saint Paul or other
public and private sector procurement opportunities.
Preference will be given to applicant requests tied to
public funded construction projects in Saint Paul.
Prohibited use of funds:
- Refinancing of any existing debt.
- Payment of taxes, fines, fees, or liens.
- Financial support of the owner(s) (salary or draw) during the pre-contract period.
- Purchase of real estate, capital improvements, or equipment where the cost cannot be recovered during the contract period.
- Purchase of an interest in any enterprise owned by another individual.
- Payment of franchise or network marketing membership fees.