The Minneapolis City Council in April approved the
Homegrown Business Development Center, aimed at supporting small and start-up food-based businesses in the city.
The center is a loan program and technical assistance center, through
which Minneapolis-based businesses associated with the processing,
manufacturing, distribution, and marketing of local food products can
apply for loans of up to $10,000 at 2 percent interest. Businesses will
need to match the loan amount.
The April approval by the City Council set in motion a year-long pilot with $100,000 in total loan funds available.
The center is part of the larger, ongoing "Homegrown Minneapolis"
effort, "one small piece of the homegrown pie," says Kris Maritz, loan
and technical assistance specialist for the
Metropolitan Consortium of Community Developers (MCCD), which
administers the loans for the city. It's "another tool in the toolbox of
loans that the city provides for small businesses."
Eligible businesses exist in the middle of the continuum of
grower-to-consumer local foods, says Maritz. While other resources exist
for local growers and retailers, the program might benefit a small
producer that has been selling at farmers' markets, for instance, but
wants to take the step to packaging and selling in greater volumes.
Maritz says the newly approved center has yet to receive its first
application, but she has spoken to about a dozen interested companies.
Maritz expects the first round of loans to go to existing companies that
already have products and/or sales under their belts. That said, the
loans are intended to support start-ups as well.
The center will also refer companies to other resources such as experts
in food packaging or nutrition labels, says Maritz.
Such resources could be just a part of a company's preparation to apply
for the loan, notes Maritz. "Just because you send in an application
doesn't mean you're going to get the cash," she says. "There's a lot of
legwork that has to be done before a business is even ready to apply for
a loan."
Once off the ground, Maritz says she thinks the program can be very
successful. "I think it can really help a lot of the food manufacturers
in the city � not just the loan capital, but sending this message to
food businesses in the metro. Even if you don't come to us for a loan,
you can still get a lot of informational help."
More information is available in the city's
Guide to Starting a Local Food Business in Minneapolis. (pdf)
Source: Kris Maritz, Metropolitan Consortium of Community Developers
Writer: Jeremy Stratton