Financial & Technical Assistance
South St. Paul works for and with companies to identify, pursue, and integrate funding and technical assistance that can help your development project move from concept to reality. Contact Economic Development Manager Ryan Garcia to discuss your project and evaluate whether there is a need and opportunity to attract funds from local, county, or state partners. The City’s Business Subsidy Policy (PDF) identifies the purpose and objectives that the EDA considers when considering financial assistance to businesses.
Tax Increment Financing (TIF)
South St. Paul has successfully utilized it’s Tax Increment Financing authority for development projects that would otherwise have had challenges to being implemented due to environmental issues or uniquely high infrastructure or site preparation costs, for example. The EDA's TIF policy (PDF) acknowledges the need to be flexible by working cooperatively with businesses to see that a development that meets the City's Economic Development goals can be successful even in challenging development circumstances.
Property Tax Abatement
For projects meeting specific criteria, the City of South St. Paul will consider abatement of some portion of City property taxes for a defined period of time. Projects requesting abatement are expected to demonstrate and commit to a significant increase in property values and/or employment as a result of the project.
As a historically heavy industrial city, South St. Paul has several sites that have perceived or known soil or groundwater contamination, however, our staff has decades of experience in brownfields redevelopment. There are financial resources at the local, county, metro, and state level that we have utilized to transform “brownfield” properties into high-quality business locations, so please contact our staff if you are curious about whether a site you’re interested in qualifies for these unique resources.
South St. Paul has had great success in working with state partners such as the Minnesota Department of Employment and Economic Development (DEED) to identify other financial and technical resources to facilitate economic development and business growth. EDA staff will work with you to determine what, if any, additional resources can be attracted to your project and will work as your partner every step of the way. Some of DEED’s most often turned to programs in SSP include:
- The Minnesota Investment Fund (MIF) provides loans through the City to expand manufacturing, industrial, and technology-related businesses.
- The Minnesota Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets.
- The Emerging Entrepreneur Loan Program helps grow minority-owned businesses, through partnerships with unique nonprofit lending partners.
South St. Paul Future Inc.
A private, for-profit corporation that will consider loaning to qualifying firms. Future Inc. offers competitive fixed asset financing to qualified firms whose operations are based within the City of South St. Paul. Whether you need financing for new equipment, expansion, startup costs, or acquisitions, Future is here to help you with the next step or fill in the gap for your traditional funding. Call 651-389-1031 for more information.
504 Loan Program
SSP can help to connect you with qualified lenders to pursue long-term, fixed-rate financing for up to 90% of the necessary capital to help your business with:
- Purchase of land and buildings
- Rehabilitation and construction
- Leasehold improvements
- Purchase of machinery and equipment
SBA 7 (a) Loan Program
SSP can assist firms with fewer than 250 employees and wholesale firms with annual sales of less than $9.5 million in obtaining loans from banks and other lending institutions by guaranteeing up to 90% of the principal and interest. SBA 7 (a) funds can be used for:
- Working capital and inventory
- Machinery and equipment
- Purchase of land and buildings
- Land acquisition
- Renovation and construction of facilities
Open to Business
South St. Paul works with MCCD’s “Open to Business” program, which offers free, one-on-one, confidential business consulting to small businesses located or thinking of locating in South St. Paul. Open to business offers a range of technical assistance to businesses and also is able to provide financing to qualified business development projects.