Access to affordable financing can make a major difference for small businesses looking to grow, expand, or invest in improvements.
The City of Minneapolis offers a program designed to help make financing more accessible: the City of Minneapolis 2% Loan Program, which provides low-interest loans to support small business development throughout the city.
Businesses located in Uptown may be eligible to use this financing for a wide range of investments, from equipment and property improvements to expansion projects.
The Uptown Association helps connect businesses in the district with this and other programs by sharing resources, answering questions, and guiding business owners toward the right contacts at the City.
What Is the Minneapolis 2% Loan Program?
The Minneapolis 2% Loan Program provides gap financing at a low fixed interest rate to support small businesses and commercial property improvements.
These loans are designed to complement private financing and help make projects financially feasible for businesses that may not otherwise qualify for traditional funding.
The program is administered through the City of Minneapolis Community Planning and Economic Development (CPED) department.
How Businesses Can Use the Loan
Funding from the 2% Loan Program can support a variety of business needs, including:
• Commercial property acquisition
• Renovations and tenant improvements
• Building rehabilitation and upgrades
• Equipment purchases
• Business expansion projects
• Other eligible investments that strengthen local businesses
Projects are typically combined with other financing sources such as private bank loans or owner investment.
Who May Be Eligible
While each project is reviewed individually, the program generally supports:
• Small businesses located in Minneapolis
• Businesses investing in commercial property improvements
• Businesses expanding operations or upgrading facilities
• Entrepreneurs seeking financing to launch or grow a business
The City evaluates projects based on their potential to strengthen local businesses, support job creation, and improve commercial corridors.
Why Programs Like This Matter for Uptown
Uptown’s strength comes from independent businesses that invest in their storefronts, spaces, and services.
Programs like the Minneapolis 2% Loan Program help make those investments possible by providing more accessible financing.
These improvements support:
• Stronger commercial corridors
• Increased foot traffic
• Better storefront experiences
• Long-term neighborhood investment
When businesses grow and improve their spaces, the entire district benefits.
How Uptown Association Helps Connect Businesses
The Uptown Association works to ensure Uptown businesses are aware of programs like the Minneapolis 2% Loan Program.
UA helps by:
• Sharing information about financing and grant programs
• Connecting businesses with City staff and resources
• Helping business owners understand program requirements
• Identifying opportunities that support local business growth
By connecting businesses to the right resources, the Uptown Association helps bring more investment and opportunity into the district.
Learn More
Businesses interested in learning more about the Minneapolis 2% Loan Program can visit the City’s website:
https://www.minneapolismn.gov/business-services/business-assistance/small-business-financing/two-percent/
If you are a business located in Uptown and would like help understanding how this program may apply to your project, the Uptown Association can help connect you with the appropriate resources and contacts.
