COMMERCIAL LENDING
LOAN PRODUCTS
The Northside Commercial Real Estate Revolving Loan Fund (NCLF)
The Northside Economic Opportunity Network (NEON) and Local Initiative Support Corporation (LISC) have partnered to form the Northside Commercial Real Estate Revolving Loan Fund. This fund is designed to spur BIPOC-led commercial real estate development in North Minneapolis, Minnesota as a solution to gentrification, displacement, and as a vehicle for wealth creation.
BIPOC controlled for-profit developers can apply for a range of financial products to cover the various stages of the commercial and residential development process including:
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Predevelopment, including feasibility studies, and acquisition loans
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Construction loans
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Revolving working capital loans
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Bridge loans
Loans can range from $25,000 to $200,000 and are intended to be short-term (usually three years or less, paid back at the time of permanent financing, subsidy payments, construction loan draws) and market competitive. These loans do not take the place of traditional financial facilities, such as those offered by private banks. Rather, they cover the portion of a project - the predevelopment stage where BIPOC developers often do not find support.
NEON also provides technical assistance in assembling the development team, preparing pro forma statements, and navigating development process.