Highland Bank Offers Businesses Many Types of Government-backed Financing

two people shaking hands and combining two puzzle pieces

Highland Bank has built a reputation as a leading provider of U.S. Small Business Administration (SBA) loans to growing businesses throughout the metro area. But we can also help businesses find capital via loan programs and guarantees provided by different governmental jurisdictions. That’s important, because it gives our business customers more options for funding growth, improvements and other needs.

Examples of other government programs we work with to secure funding for local small businesses include:

City of Minneapolis 2% Loan Program. Provides low-cost financing to small, Minneapolis-based, retail, service and light manufacturing businesses for equipment purchases and building improvements. A private lender like Highland Bank makes half of the total loan at market rate and the City of Minneapolis provides the rest — up to $50,000 at a two-percent fixed interest rate (up to $75,000 in designated neighborhood commercial districts). The private lender sets the loan term, which can be as long as 10 years.

City of St. Paul Neighborhood STAR Loan and Grant Program. This program awards loans and grants for capital improvement projects in St. Paul neighborhoods, and is funded with 50 percent of sales tax proceeds. The program’s goal is to award 60 percent of this money as loans and 40 percent as grants each year through a competitive application process.

Eligible applicants include any public, private or non-profit entity located in or doing business in St. Paul. All STAR loans and grants must be matched on a 1:1 basis with eligible resources such as owner equity and bank financing.

“Working with a bank and banker that understands and has experience with these kinds of programs can make a huge difference in your business’s ability to obtain the most cost-effective financing possible,” said Mary Stoick, Business Banker for Highland Bank.

Stoick noted that funds Highland Bank provides in partnership with these programs help small businesses and non-profits save money, and that the longer loan terms give them greater flexibility.

“Of course, the community also benefits, in the form of jobs, necessary products and services, and additional tax revenues,” she added.

Would you like to know more? Contact Mary Stoick about government-backed financing options.


Highland Bank Helps Charter School Stay in Community

A start-up charter school in the north metro had been leasing its building, and the owner notified the school that he was going to sell the property. Highland Bank worked with a non-profit corporation that focuses on helping start-up charter schools, and provided financing for the non-profit to acquire the building.

This arrangement allowed the charter school to remain in its present location, serving students and the local community. The school was also able to expand its facility, invest in additional student programs and, best of all, position itself to one day own the building.


an SBA Preferred Lender assisting Small Businesses throughout the Twin Cities

It’s often said that small business is the backbone of the American economy. Small businesses employ more than half of the nation’s private workforce and generate the majority of new jobs.

As the country’s largest single backer of small businesses, the SBA has assisted more than one million small companies last year alone. Here at Highland Bank, we work closely with the SBA to help local small businesses thrive. Kim Storey, SBA Manager at Highland Bank, is proud of the key role we play.

“We’re one of a select few SBA Preferred Lenders in the Twin Cities area, and we currently have more than $5 million in SBA loans to local small businesses. Those businesses and that money make a big impact in their communities,” Storey emphasized.


How Highland Bank’s “SBA Preferred Lender” Status Benefits You

  • Quick turnaround. We’re able to approve SBA loan requests in-house once we have all required financial information.
  • Expert assistance. Highland has deep experience serving small-and mid-size businesses, and offers a wide range of tools.
  • More options. Because we work directly with the SBA, Highland Bank can provide more ways to meet your financing needs.

SBA Loan Program Options

SBA 7(a) Program offers the most flexible and longest-term loans. May be used for everything from start-up and real estate to equipment and working capital.

  • Terms of up to 25 years and lower payment
  • Competitive rates and no balloon payments
  • Loan proceeds can be used for many purposes

SBA 504 Program is for businesses with a net worth of under $15 million. This financing involves two loans — one from Highland Bank and the other from a Certified Development Company (CDC). It also has higher loan limits, so it’s ideal for larger projects. The loans may be used for real estate, construction, equipment, expansion and more.

  • Terms of 10–20 years with lower payments
  • Below market fixed rates on SBA financing
  • Smaller down payment and no balloon payments

SBA Express Program provides working capital lines of credit for manufacturing, wholesale, services and retail businesses. May be used to finance inventory, accounts receivable, a specific contract and more.

  • Terms of up to 7 years
  • Competitive rates
  • No application required

Contact Kim Storey to learn more about our SBA loans program.