The Cambridge Downtown Revolving Loan, Facade Grant, and Interest Rate Subsidy Program were established to provide additional financial resources and incentives for downtown property owners to improve their place of business. The goal of the programs are to help keep downtown Cambridge a thriving and attractive place for commercial & retail activity.

• Downtown Facade Grant Guidelines
• Downtown Facade Grant Application
• Downtown Revolving Loan Fund Guidelines
• Downtown Revolving Loan Fund Application
• Interest Rate Subsidy Program Guidelines
• Interest Rate Subsidy Program Application
• Downtown Area Map
• Data Privacy Form
• Release of Information Form

Cambridge Lenders Administer SBA and 504 Loans

Three commercial lenders work in partnership with the Small Business Administration to administer SBA 7(a) and 504 loans.

Cambridge State Bank

Cambridge State Bank is an independently owned and managed community bank that has been helping businesses and individuals reach their financial goals since 1914. Banking services include checking and savings accounts; business, personal and mortgage loans; and online and telephone banking. The bank has two Cambridge locations.

Business services include:

• Working Capital Loans
• Fixed Asset Financing for Equipment and Machinery
• Asset-Based Lending for Accounts Receivable, Inventory, Real Estate and Equipment
• Receivable and Inventory Financing
• Revolving Lines of Credit
• SBA Loans
• Lease Financing
• Letters of Credit

First Bank & Trust

Built on a foundation of community, First Bank & Trust continues to promote local banking. When you open an account at a location near you, you’ll work with a banker who understands the needs of customers, like you, in your area. This idea of independent community banking stems from a long history of upholding family ideals and always delivering the best products possible.

Wells Fargo and Acordia

Wells Fargo Cambridge offers a full line of business banking services to help companies achieve their financial goals, including:

• Business loans and lines of credit at competitive rates
• Business deposit account services, cash flow analysis and management services
• Full service online banking and Business Bill Pay
• Payroll processing services
• Merchant credit card processing services
• Foreign exchange risk management

Through Acordia, a Wells Fargo Company, businesses have access to the following insurance products and services:

• Employee health, dental, and vision plans
• Life and disability plans
• Product and general liability, worker's compensation, professional liability and other business insurance needs

Wells Fargo and its affiliates offer banking, mortgage, investments, insurance and other financial services through 171 stores in 99 Minnesota communities, Wells Fargo Online® Banking, 24-hour telephone banking and about 550 Wells Fargo® ATMs.

City of Cambridge

The City of Cambridge has a variety of low cost financing tools available to qualified businesses they work in partnership with many of the following Economic Development Partners listed below.

• Loans available through the Minnesota Investment Fund Department of Employment and Economic Development
• JOBZ Minnesota Job Opportunity Building Zone that provides tax incentives to qualified businesses
• Tax Abatement
• Tax Increment Financing
• City of Cambridge Revolving Loan Fund
• City of Cambridge & Cambridge EDA owns land in 3 Industrial Parks and 1 retail development area

Initiative Foundation

The Initiative Foundation enhances the economic vitality of Central Minnesota by providing more than $3.5 million in gap financing each year to small businesses. If offers five specialized loan programs.

• Direct Business Loan Fund helps central Minnesota companies create or retain quality jobs by filling gaps in business financing packages. Targeted industries include manufacturing, technology-based sectors, and value-added agriculture. Loans range from $50,000 to $250,000.
• Technology Capital Fund invests in two types of enterprises: emerging technology ventures, and established companies integrating proven productivity applications into operations. Investments range from $50,000 to $500,000.
• Green Business Fund targets entrepreneurs whose products and services help protect and preserve the environment, reduces or recycles an existing waste stream, or reduces energy demands. The fund meets the gap between financing provided by a local lender and the equity an owner is able to contribute. Investments range from $50,000 to $250,000.
• Seed Capital Fund advances emerging entrepreneurial ventures by financing new product concepts, development and market research. In return for investments up to $50,000, the Initiative Foundation negotiates company equity or royalties that reflect the incurred risk.
• Microenterprise Loan Guaranty Fund increases local ownership or expansion of small businesses – especially among underserved populations. It targets non-traditional borrowers, including women, people of color, young adults and applicants with low net worth, but funds other applicants as well. The fund protects banks and lenders against loan default by underwriting up to $50,000 through a simple guaranty contract.

USDA Rural Development

Information on two USDA grant programs can be found at the USDA website or by calling the Cambridge office at 763-689-3354.

• Rural Energy for America program offers grants, guaranteed loans, and combination grant/guaranteed loans to agricultural producers and rural small businesses. The program helps them buy and install renewable energy systems. It also encourages them to make energy efficiency improvements to nonresidential property. Selection is based on a nation-wide competition. Funds are awarded annually.
• Value-Added Producer Grant helps eligible producers of agricultural commodities develop business plans and marketing strategies for viable marketing opportunities in emerging markets. Applications are selected on a nationwide, competitive basis once a year.

East Central Energy (ECE)

ECE is a member-owned electric cooperative. Formed in 1936, we currently provide electric service to more than 59,000 homes, farms, and businesses in east central Minnesota and northwestern Wisconsin. There are many ways you can save on energy costs through our programs, efficiency rebates and incentives. Call 1-800-254-7944 to speak with the Business Accounts Specialist for your service area.

• The Business Development Loan Program participates in financing business expansions. The program focuses on site acquisition, building construction, and electrical costs. It is funded by ECE and its power supply cooperative, Great River Energy, in partnership with a lender of the customer's choice. Financing is set at market rates, typically on 5-10 year terms. Loan limits are $200,000.
• East Central Energy sponsors loans for economic development projects through the Minnesota Community Capital Fund. Loans must qualify to be purchased through the MCCF's relationship with the Community Reinvestment Fund. (It bundles and offers loans on the secondary market.) Loans may be up to 20 years in length. Interest rates are determined by the secondary market. ECC loan limits are $500,000 per project.

Great River Energy

Great River Energy's Business Financing Program features three interrelated options:

• E3 (Energy Efficiency Equipment) Loan program: This program provides a low-interest loan to cover the costs of acquisition and installation of energy efficient equipment. Loans up to $350,000 will be considered with an interest rate determined by energy savings achieved. A minimum of 10 percent owner-equity is required.

• USDA Rural Economic Development Loan and Grant program: This program provides zero-interest loans and grants to Rural Utilities Service borrowers to promote rural economic development and job creation projects. Loans (up to $1 million) are passed through the Rural Electric Cooperative (REC) to the Ultimate Recipient. Grants are used to capitalize the REC Revolving Loan Fund. The initial loan is made to the Ultimate Recipient. As a result of this program, many of our member cooperatives now maintain revolving loan funds which they use to support local economic development projects in the communities they serve.

• Data center site assessment program: This program is designed to identify the most suitable real estate sites for a data center development in our member service territory across greater Minnesota.  

• Link for additional information: econdev.greatriverenergy.com

Central Minnesota Development Company (CMDC)

This private nonprofit corporation "promotes the economic viability within central Minnesota by cultivating a financing environment that allows small businesses to prosper." It is a division of the Minnesota Business Finance Corporation.

As an SBA premier certified lender, CMDC provides the following services to lenders and businesses:

• SBA 504 loans to small businesses for long-term fixed assets
• SBA pre-qualified loans
• SBA 7(a) loan packaging assistance
• SBA low-doc packaging assistance
• CMDC small business loan funds
• Business plan development assistance
• Business banking relationship assistance

Twin Cities-Metro Certified Development Company

Twin Cities-Metro CDC has provided more than a billion dollars in financing to thousands of small business owners through the Small Business Association’s 504 loan program. The SBA 504 loan program works in combination with participating financial institutions. It provides financing to acquire or expand owner-occupied commercial real estate or to purchase capital equipment. Advantages include:

• Low down payment – typically 10% of total project cost.
• 90% financing – up to $4 million for manufacturers
• Longer repayment term – up to 20 years for real estate
• Low interest rate fixed for entire term of Loan.

East Central Regional Development Commission (ECRDC)

The Community and Economic Development division of this public agency provides gap financing loans, seeks funding, provides land use planning and zoning assistance, develops housing studies, and coordinates several region-wide economic development initiatives.

• The Revolving Loan Fund provides gap financing to businesses locating or expanding in Isanti and neighboring counties. It covers building construction, conversion or enlargement; equipment; modernization costs; start-up operating costs; and working capital.

Minnesota Department of Employment and Economic Development

DEED sponsors several low-interest funding programs designed to create and retain high quality jobs.

• The Minnesota Investment Fund awards grants to local units of government which provide loans to expanding local industrial, manufacturing and technology-related industries. Loans of up to $500,000 may be used for land, buildings, infrastructure improvements, equipment or training.
• Small Business Development Loans create jobs and provide loans for business expansions. Loans are funded through the issuance of industrial development bonds backed by a state-funded reserve.

Small Business Development Center (SBDC)

The SBDC fosters economic growth in the region by providing information and professional business consulting at no cost to qualified business owners and prospective business owners. In addition, the SBDC partners with Anoka Ramsey Community College and other local organizations to offer business related training opportunities at a reasonable cost to attendees. Contact Greg Bergman at 218-855-8145 or the Small Business Development Center.

“We are strongly committed to creating good jobs in the Cambridge area.”
— Terry Grabau, Community Development Manager East Central Energy

The fundamental purpose of providing Tax Abatement in Cambridge is to encourage desirable development or redevelopment that is in the public's best interest.

It is the intent of the City to provide the minimum amount of Tax Abatement, as well as other incentives, at the shortest term required for the project to proceed. Preference is given to projects in which the total amount of Tax Abatement request includes participation from Isanti County.

Objectives of Tax Abatement

As a matter of adopted policy, the City will consider using Tax Abatement to assist private development projects to achieve one or more of the following objectives which are found to be in the public's best interest:

To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits as defined in the City's Business Subsidy Policy.

• To enhance and diversify the City of Cambridge’s economic base.
• To encourage additional unsubsidized private development in the area, either directly or indirectly through "spin off" development.
• To facilitate the development process and to achieve development on sites that would not be developed without Tax Abatement assistance.
• To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high quality redevelopment and private redevelopment and private reinvestment.
• To offset increased costs of redevelopment (i.e. contaminated site cleanup) over and above the costs normally incurred in development.
• To create opportunities for affordable housing.
• To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/ or operating costs of local government.
• To invest in public infrastructure.
• To significantly increase the City of Cambridge’s tax base.

Three Types of Tax Increment Financing

Tax increment financing uses the increase in property taxes generated by new development to finance qualified public improvement costs related to that development. The difference between the current property tax on a parcel of land and the estimated property tax after development is the "tax increment." Permitted uses of the tax increment vary according to the type of tax increment financing.

Three Types of TIF Districts

• Economic Development Districts
• Housing Districts
• Redevelopment Districts

Eligibility Requirements

For economic development purposes, the City of Cambridge will consider using tax increment financing to write down the cost of land, utilities, roads, site preparation, rail access and other eligible economic development uses. To be eligible for TIF, a project should:

• Create new commercial/industrial tax base
• Effectively use community infrastructure and industrial park land
• Redevelop underutilized industrial land or properties with rail access, or
• Encourage private investment in properties which the City has targeted for development or redevelopment

Varied Subsidy Levels

It is not necessary for a single project to achieve all of theses goals. The degree to which it meets these goals influences the level of subsidy it can expect to attract.

Limitations on Tax Increment Financing

Tax increment financing can't be used in conjunction with the Minnesota JOBZ program because JOBZ abates the property taxes upon which tax increment financing depends.