Neighborhood Development Center
“Restart Your Business” Loan Fund
Established in 1993, Neighborhood Development Center (NDC) is a nonprofit CDFI that provides training, lending, technical assistance, and business incubation services to help under-resourced entrepreneurs start and grow businesses. NDC focuses on the highest-need neighborhoods of St. Paul and Minneapolis – those with the highest poverty suffered mostly by people of color. In 2019, NDC served 800 entrepreneurs, of which 97% were minorities, 82% made below 50% of area median income, and 53% were women.
Venn’s PRI is helping NDC launch a one-time “Restart Your Business” Loan Fund in order to quickly assist NDC’s existing entrepreneurs with reopening in the wake of the initial COVID-19 shutdown as well as the unrest following the killing of George Floyd. For every dollar raised on the Venn PRI, another dollar will be granted into the fund from another source, which will allow the fund to make extra concessionary and catalytic loans to NDC’s entrepreneurs during an especially challenging business climate.
Bolé Ethiopian Cuisine
Located in St. Paul's Midway neighborhood, Bole Ethiopian Cuisine lost its entire building to fire during the civil unrest. Business owner, Rekik Meratsion, reached out to NDC for assistance in purchasing a food truck. In addition, Rekik needs capital to restock his food supply, adapt his menu, and market his transformed business in a new way.
Omari Brow Studio
As a Black woman, Syreeta Seve wanted to see a boutique in her community that reflected her aesthetic. She attended NDC’s training program, got a loan from NDC, and opened Omari Brow Studio in 2014. The company has been providing boutique eyebrow care since. After closing from the pandemic for two months this spring, she reopened her business this summer and is doing her best to rebuild and grow her client base in this unprecedented business environment.
Greenery Minneapolis
After attending NDC's business training program, Native American entrepreneur, Melissa Marcelle, launched The Greenery Minneapolis, a plant shop. Located in the usually bustling Midtown Global Market, the business was hit hard by the statewide spring shutdown in response to COVID-19. While restaurants in the same building pivoted to curbside delivery, retailers struggled from the dramatic fall in foot traffic. In response, Melissa has diversified the products in her store and is focused on selling at farmers markets and outdoor pop-up venues.
Recipient Name: Neighborhood Development Center
Corporate Form: Nonprofit 501(c)3
Investment Sought: $80,000 - $500,000
Raised to Date: $335,458
Overview of Investment Terms:
Unsecured, subordinate loan
Annual simple interest of 0.5%
Years 1-4: Annual interest-only payments
Year 5: Two balloon payments of principal and interest
Conditional forgiveness:
-) Up to 25% principal forgiveness based on actual negative return performance of the Fund’s loans
-) 5% principal forgiveness incentive if NDC pays all interest and 95% of principal on time