Areas Served: Big Stone, Chippewa, Lac qui Parle, Swift or Yellow Medicine Counties
The UMVRDC Revolving Loan Fund is designed to provide gap financing for business and industry starting up or expanding in the Minnesota five-county region of Big Stone, Chippewa, Lac qui Parle, Swift and Yellow Medicine.
The primary focus of the program is manufacturing and industrial-related businesses that will create or retain jobs.
Eligibility: Must be located in Big Stone, Chippewa, Lac qui Parle, Swift or Yellow Medicine Counties.
Requirements – Bank Participation – Business Plan – Past, Present and Future Financial Information Financing Policies Loan Size – $5,000 $100,000 Type of Assets Financed – Fixed assets – Working capital – Real estate Terms – Fixed assets financed up to 10 years – Real estate financed up to 20 years – Working capital up to 5 years – Average financing is 5 7 years – Scheduled balloon payments are sometimes utilized Interest Rates – Not less than 4% below prime with a minimum of 4% – Most loans are made at 5 7% – Fixed rate Equity 10% borrower equity is encouraged Collateral All loans must be secured with available assets, inventory, real estate and personal guarantees Repayment Loan repayments must be made by electronic transfer (ACH) or a participation agreement with the lead lender Other Requirements Borrower must demonstrate a gap financing need
Contact InformationUpper Minnesota Valley Regional Development Commission
Address: 323 West Schlieman Ave
City: Appleton
State: Minnesota
Website:
http://umvrdc.org/what-we-do/programs/revolving-loan-fund-2/
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