Thanks Bob, for pointing out that Mpls. isn't being outdone by St. Paul when it comes to subsidizing small business, especially minority-owned small business.
It's my understanding that the Empowerment Zone (EZ) has an interest-free loan program for Muslim owned businesses-- maybe that's described in the link you provided (below). I heard about it at the recent Minnesota State Planning Conference. I question why the government has to get involved in financing small businesses at all these days, often using non-profits to manage the programs. All these non-profits suck up fees, and often run other programs that, in the end, compete with the private sector. I don't like paying taxes that go to non-profits which end up competing against me in the marketplace. State money, federal money, local programs, I don't really care. The SBA has loan guarantee programs for small businesses, and local banks get paid to assume the risk of bad loans (even if only for the non-guaranteed portion of SBA loans) and screen applicants accordingly-- taxpayers don't get compensated for any risk or for any losses. Can't these businesses get conventional financing? If not, there must be a reason. Interest rates are at record low levels and inflation is at near zero. Why are we providing subsidized loans to anyone? Let alone interest-free loans. Let the private lenders do their job! Where are our priorities for public expenditures in these tough times? Michael Hohmann Linden Hills > -----Original Message----- > From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]]On Behalf Of > Cooper, Bob > Sent: Friday, December 06, 2002 4:40 PM > To: [EMAIL PROTECTED] > Subject: RE: [Mpls] St. Paul launches minority business initiative > $200,000 (What about Mpls?) > > > There have been several recent postings, in light of St. Paul's recent > initiative, that have asked about Minneapolis' efforts to aid > minority small > businesses. snip > This year, the MCDA allocated $100,000 to the Minneapolis Consortium of > Community Developers to provide Micro loans to very small > neighborhood-based > businesses (http://www.mcda.org/Services/Business/microloan.htm) . > Historically, 80% of Micro loans in Minneapolis have gone to > minority-owned > businesses. Over the last six years, the MCDA has allocated over > $500,000 to > the Consortium for Micro loans. > > This year, the City initiated a new $1 million Empowerment Zone (EZ) loan > program for small businesses within the EZ boundaries > (http://www.ci.minneapolis.mn.us/citywork/ez/). The program is operated by > the Minneapolis Consortium, the Neighborhood Development Center and Women > Venture. The first group of loans in the new EZ program have all gone to > minority-owned businesses in the Empowerment Zone. > > This year, the MCDA also has facilitated $1.8 million in real estate loans > for inner-city minority business owners through the Capital > Acquisition Loan > program (http://www.mcda.org/Services/Business/capitalacq.htm). Projects > have included a Hmong auto repair garage, a Latino tortillaria and several > African-American-owned businesses including a construction > company, a bakery > and grocery store. The City, working through MCDA and the > Empowerment Zone, > has played the lead role in facilitating $90,000 in financing for the new > coffee shop, Cafe Tatta Bunna, in the Minneapolis Urban League's Gleason > Sudduth Center. Finally, the MCDA is planning a new technical assistance > initiative with the University of St. Thomas targeted at > immigrant-owned and > minority-owned businesses. > snip > Robert Cooper > Minneapolis Community Development Agency > Community Outreach Department > 105-5th Avenue South > Minneapolis, MN 55401 > voice: (612) 673-5239 > fax: (612) 673-5212 > web: http://www.mcda.org > snip _______________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Unsubscribe, Digest, and more: http://e-democracy.org/mpls
