

Elevate Hennepin Commercial Property Ownership Loan Fund
With funding provided by Hennepin County, NextStage is offering the Elevate Hennepin Commercial Property Ownership Loan Fund. The purpose of this fund is to increase commercial property ownership opportunities among smaller scale and/or historically disadvantaged entrepreneurs challenged to meet the equity requirements for traditional financing programs.
Commercial ownership can provide a significant opportunity for entrepreneurs to meet the operating and growth needs of their small business venture while fixing overhead costs and building transferable assets/equity value over time.
The Elevate Hennepin Commercial Property Ownership Loan Fund pairs two distinct loan products designed to address equity-related barriers to commercial property ownership for owner-occupant applicants and borrowers.


Elevate Hennepin Commercial Property Acquisition and Improvement Loans
Qualified projects can access up to $250,000 to support the Acquisition and Improvement of a commercial property located within Hennepin County, under the following terms:
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CPAI loans are 7 years in term (may be amortized up to 25 years to match other project financing).
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CPAI loans shall have a 5% Interest Rate, fixed for the life of the loan.
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CPAI loans may be accessed as part of a larger financing package and will subordinate to Lead Lender/1st Mortgage holder.
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CPAI loan amount is limited to the lesser of $250,000 and the total of other financing in the project.
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Total of CPAI and all superior secured financing may not exceed 90% of the Current or ‘as-completed’ appraised value at the time of closing.
To qualify for an Elevate Hennepin Commercial Property Acquisition and Improvement Loan, borrowers must meet NextStage’s standard underwriting guidelines, and the following additional criteria:
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Must be an established for-profit business entity registered with the State of Minnesota, with a minimum of three years in revenue operations.
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Operate within the geographic confines of Hennepin County.
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Have fewer than 100 employees.
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Demonstrate hardship and need for the Elevate Hennepin Commercial Property Acquisition and Improvement loan in order to complete an eligible purchase and/or purchase and renovation.
In addition, the commercial property acquisition and improvement project and the borrower must meet the following criteria:
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Project size must be under $5 million.
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Project must be located within a municipality that has an applicable multi-jurisdictional agreement in place with Hennepin County and the Hennepin County Housing and Redevelopment Authority (HCHRA).
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Funds must be used to augment owner equity for acquisition and improvement of business owner-occupied commercial property.


Elevate Hennepin Equity Enhancement Loans

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EE loans are 7 years in term.
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EE loans shall have a 0% Interest Rate for the life of the loan, and no required payments until loan expiration (full balance will balloon and be due at the end of the Loan Term).
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EE loans may ONLY be accessed as part of a larger financing package and will subordinate to all other project-specific financing.
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EE loan must be paired with a CPAI loan, and loan amount is limited to the lesser of $100,000 and the amount of the associated CPAI loan.
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Total of EE and all secured financing may not exceed 95% of the Current or ‘as-completed’ appraised value at the time of closing. Additionally, EE Loan amount may not exceed 5% of appraised value.
Borrowers must demonstrate additional hardship and need for an Elevate Hennepin Equity Enhancement loan in order to complete an eligible purchase and/or purchase and renovation.
Certain qualified borrowers/projects may be eligible to access a second ‘Equity Enhancement’ loan for up $100,000 to support the acquisition of a commercial property located within Hennepin County, under the following terms:
Certain borrowers and projects are not eligible for Elevate Hennepin Acquisition and Improvement loan product funds, including:
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Corporate chains, multi-state chains
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Businesses prohibited from doing business with either the federal government or the state of Minnesota as a result of debarment or suspension proceedings
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Development and/or management of residential housing (single or multi-family)
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Acquisition of commercial property for passive investment purposes (not occupied by related business entity)
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Businesses that primarily derive income from passive investments only, gambling, or any income from adult entertainment
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Businesses that primarily derive income from the appreciation and resale of assets.
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Projects located in municipalities that do not have applicable multi-jurisdictional agreements in place with Hennepin County and the Hennepin County Housing and Redevelopment Authority (HCHRA).
Example Project:

