Areas Served: BELTRAMI, CLEARWATER, HUBBARD, KITTSON, LAKE OF THE WOODS, MAHNOMEN, MARSHALL, NORMAN, PENNINGTON, POLK, RED LAKE, ROSEAU COUNTIES
The Northwest Minnesota Foundation provides an SBA Micro Loan fund for businesses in northwestern Minnesota.
Loan Overview
- Retail, service, manufacturing and other business types are generally eligible.
- Loan funds can be used for equipment, inventory and working capital.
- Real estate, building purchase or construction are not eligible.
- The maximum loan amount is $35,000. There is no minimum.
- Refinancing of existing debt is not eligible.
- Loan terms can be up to six years and the payment schedules depend on the cash flow.
- The current interest rate is 7.5%, fixed for the term.
- All loans must have collateral and are typically subordinate to a lead bank (if involved).
Eligible Activities and Use of Funds
- Value-added manufacturing and processing.
- Technologically innovative industries.
- Agri-processing, marketing and specialty crops production.
- Tourism and information industries.
- Goods and services that enhance Quality of Place.
- Funds may be used for working capital, inventory, equipment, land and buildings.
- Ineligible activities include general retail businesses and conventional agricultural production.
General Policies
- Funding gaps must exist.
- 50% financing from private sources required.
- Minimum down payment of 10% required.
- Jobs must be created or retained with acceptable wage levels.
- Minority applicants are encouraged to apply.
Contact Information
Northwest Minnesota Foundation
Address: 4225 Technology Drive, NW
City: Bemidji
State: Minnesota
Website:
https://www.nwmf.org/
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