Areas Served: Itasca, Cook, Lake and St. Louis counties
The IRRRB Business Development financing programs exist to assist new or expanding private sector businesses to create and maintain productive, permanent, skilled employment in the Taconite Assistance Area.
Businesses who wish to apply for funding under this program are required to comply with Minnesota State Law and IRRRB policy regarding prevailing wage.
Eligible Businesses The purpose of this program is to increase, expand and diversify the area’s economic base by assisting private investment.
Emphasis will be placed on projects that promote manufacturing or innovative technology.
Start-up businesses and existing businesses are eligible for assistance.
They may be organized as proprietorships, partnerships or corporations.
Primary consideration will be given to the following types of businesses: – Manufacturing/Assembly – Projects which attract expenditures from outside of the TAA – Technologically innovative projects IRRRB financing can be structured to best suit your needs.
The agency is limited by law to a maximum of 50 percent participation in eligible financed costs.
Bank Participation Loans: IRRRB purchases a portion of a loan originating with a commercial bank or other regulated lender.
A shared first position lien, with the bank or lender, on the financed assets and/or other assets is required.
Generally, the maximum participation by IRRRB in any single project is limited to not more than $250,000. However, the interest rate on the agency’s purchased participation will be set at a minimum interest rate 3 percentage points less than the full-faith and credit obligations of the United States Government of comparable term to the loan, rounded up to the nearest one-half percent.
The minimum rate charged on participation loans is 1 percent.
The interest rate is determined at the time the participation loan is approved by IRRRB.
(The interest rate on the bank portion of the loan is a matter to be negotiated between the business and the bank.
) Direct Loans: IRRRB loans its funds directly to the eligible business.
Collateral requirements are negotiable, but typically the agency will require a first lien on the financed assets and/or other assets.
The interest rate will be set at an interest rate one percentage point less than the full-faith and credit obligations of the United States Government of comparable term to the loan, rounded up to the nearest one-half percent.
The minimum rate charged on direct loans is three percent.
The interest rate is determined at the time the loan is approved by IRRRB.
Loan Guaranties: IRRRB will consider a limited guaranty on a loan to an eligible business that is originated by a commercial bank and/or other lender.
Terms and conditions of any guaranty will be negotiated between the lender and the agency.
Equity Investment: IRRRB has statutory authority to invest its funds directly into eligible privately owned companies that exhibit extraordinary growth potential.
The investment can be in the form of a direct stock purchase or in a convertible debenture.
Terms and conditions are negotiable.
Allowable Use of Proceeds The following are allowed uses for IRRRB financing: – Land and Building Acquisition – Building Renovation – Land Improvements – Machinery/Equipment Purchase – New Building Construction – Inventory Purchase
Contact InformationIron Range Resources & Rehabilitation Board
Address: 4261 Hwy 53 S
City: Eveleth
State: Minnesota
Website:
http://www.ironrangeresources.org/business/financial-assistance/guidelines#c
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