Small Business Loan Program

Hopkins has established a Small Business Loan Program to provide onetime forgivable, no-interest loans of up to $5,000 to assist eligible small businesses. 

Purpose

The purpose of the program is to provide working capital to assist local small businesses to improve their physical space in order to promote long-term economic vitality in the community. Funding for the program is made possible by the federal American Rescue Plan Act (ARPA).

Eligibility

To apply, businesses must meet all the following criteria:

  • Be located within the City of Hopkins and have a physical address that is a brick and mortar facility with foot traffic;
  • Be a for-profit or non-profit business that has been in operation prior to March 1, 2020;
  • Be a legal entity registered and in good standing with the Minnesota Secretary of State;
  • Be in compliance with city ordinances, codes, licensing, and must not have any delinquent taxes, bills, or other charges due to the City;
  • Employ at least one person in addition to the owner and no more than 25 full-time equivalents (FTEs); 
  • The applicant must be the property owner or a commercial tenant with written permission from the property owner;
  • Property must have conforming uses under the zoning code;
  • All projects must follow the requirements of the Hopkins Building Code & Hopkins Zoning Code.

Ineligible applicants include businesses that 

  • Do not have a physical commercial address located within the City of Hopkins
  • Derive income from passive investments without operational ties to operating businesses or whose primary source of revenue is from business-to-business transactions
  • Primarily generate income from gambling activities
  • Generate income from adult-oriented activities
  • Are corporate chains that are not independently owned

Eligible Expenses

Eligible expenses are exterior publicly visible physical improvements including but not limited to:

  • Canopy or awning installation or repair
  • Exterior lighting
  • Exterior painting or re-siding
  • Fencing
  • Installation or repair of exterior signage 
  • Landscaping
  • Masonry repairs and tuck pointing
  • Public art and murals, subject to City approval of the design
  • Removal of barriers to access the building from outside or in the inside for people with disabilities
  • Repair, replacement, or installation of windows and doors 
  • Roofing
  • Trash and mechanical enclosures

Ineligible expenses include purchase of property, mechanical and HVAC systems, interior window displays, and security systems and interior work with the exclusion of ADA accessibility improvements.

Loan Guidelines

The following terms and conditions apply to the Small Business Loan Program:  

  1. Amount: A business may apply for a one-time forgivable loan award not to exceed $5,000. Each approved business’s maximum grant amount shall be limited to their identified eligible expenses.
  2. Interest Rate: All loans shall have an interest rate of 0%.
  3. Term: All loan awards must be utilized by November 1, 2024. 
  4. Forgiveness: The loan will be forgiven, and the loan agreement terminated by the City upon satisfactory completion of the requirements outlined in the Reporting section. 
  5. Termination: Hopkins retains the right to terminate any agreement for the program funds and demand repayment of the loan if a loan recipient is found to be in violation of any conditions set forth in the eligibility guidelines or loan agreement. 
  6. Right to Deny: Hopkins retains the right to deny any application for funding.
  7. Funding Availability: The Hopkins Small Business Loan Program has a limited amount of funds available. If the program is over-subscribed, loan recipients will be determined through a random lottery process until the loan funds are exhausted.
  8. Indemnification: All loan recipients shall be required to indemnify the City of Hopkins and any officers acting on their behalf. 

Application

Applications are now closed. Applications were accepted June 3, 2024 – June 28, 2024. Applications are not accepted after June 28, 2024.

Application Process

Upon submission of an application, City staff will review the application to ensure complete information is provided. It is anticipated that the City will receive more requests than money available, in which case the City will conduct a lottery of all complete and qualified applications. 

If demand exceeds the availability of funds, then owners of multiple businesses would only be selected to receive one loan. If there is availability of funds, then owners of multiple businesses may be eligible to receive multiple loans. 

Funding Process

Upon being selected, the loan recipient shall enter into a loan agreement with the City of Hopkins. Funds shall be distributed within two weeks after a loan agreement has been executed by all required parties.

Reporting

All loan recipients are required to submit follow-up information to the City of Hopkins by November 1, 2024. 

This information includes a budget of how the loan funds were utilized with evidence in the form of paid invoices, statements, or similar documentation. Upon receipt of acceptable documentation, the City of Hopkins will forgive the loan and terminate the loan agreement. 

Failure to supply required documentation will trigger repayment of the loan. The expenses included in the final report, that were paid for using loan proceeds, must not have been and will not be paid or reimbursed through any other assistance funds, including but not limited to local, state, and federal assistance dollars.