Areas Served: Benton, Cass, Chisago, Crow Wing, Isanti, Kanabec, Mille Lacs, Morrison, Pine, Sherburne, Stearns, Todd, Wadena and
The Microenterprise Loan Guaranty Fund is designed to increase local ownership or expansion of small businesses, especially among underserved populations who may find it difficult to access capital through traditional lending institutions.
The fund protects banks and lenders against loan default by underwriting up to $50,000 through a simple guarantee contract.
For business start-up and expansion projects, Initiative Foundation business financing programs meet the gap between the financing a local lender is able to provide and the equity the owner is able to contribute.
Financial participation by a local lender is required.
Investment Amount: up to $50,000 or 80% of the original loan balance, whichever is less.
Preferred Borrowers – Nontraditional business owners including women, minorities, young adults and applicants with low net worth.
– Individuals outside these targeted categories are also encouraged to apply.
Eligible Investments – Operating capital – Fixed assets, land and buildings – Construction or leasehold improvements – Acquisition, renovation or installation of machinery and equipment – Limited refinancing, when necessary to consolidate debt Collateral and Credit Worthiness – Owner commitment (equity), credit worthiness and capacity for repayment must be shown.
– Personal guaranties from principal owners are required.
Contact InformationInitiative Foundation
Address: 405 First Street SE
City: Little Falls
State: Minnesota
Website:
http://www.ifound.org/business_microloan.php
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