MEDA Loan Program Supports Minority Businesses and Entrepreneurs
Otto Bremer Trust co-CEO and trustee Daniel Reardon helps the trust facilitate positive change in communities across the Upper Midwest. Alongside his colleagues, Daniel Reardon aided Otto Bremer in surpassing its previous record for annual distributions with a total of $47.3 million in grants and program-related investments given away in 2016. Nonprofit organizations that received financial support in 2016 include the Metropolitan Economic Development Association (MEDA), which offers a loan program for entrepreneurial minorities. MEDA’s loan program helps businesses access funding they cannot obtain from traditional lending resources with a focus on ensuring business stability and growth. Financing available from the program supports business operations and expansions and includes loan proceeds for a variety of uses that range from project financing and business acquisition to franchise fees and working capital. Loan proceeds may also be used to acquire business equipment, establish lines of credit, and facilitate physical build-outs. In addition, loan clients can work with MEDA business consultants to develop loan packages for presentation to potential funders. Businesses eligible for the program include those owned and controlled by persons of color, and the program operates in participation with the client’s existing bank. Clients must apply for a minimum loan of $25,000, although loans exceeding $400,000 require participation from a higher bank.