REVOLVING LOAN FUND
The Mid-Minnesota Development Commission on behalf of the Counties of Kandiyohi, McLeod, Meeker, and Renville, have established a Revolving Loan Fund (RLF) with the assistance of the participating counties, the federal Economic Development Administration, the Southwest Minnesota Foundation, The State of Minnesota, and the MMDC.
RLF Eligible Businesses:
- Must be a for-profit business located in the Region’s four counties.
- Businesses must be deemed viable and involve job creation/retention.
- Businesses must demonstrate a need for gap financing.
Use of Funds: Building, Equipment, Land, Working Capital
Loan Terms:
Amount: $5,000 minimum / $100,000 maximum
(Note: Amount available limited to the number of jobs retained or created, i.e. Average one job per $10,000 loaned.)
Rate: Average two (2) points below prime.
Terms: Terms may vary depending on the use of funds and analysis of repayment.
Working Capital: 5 years maximum
Machinery & Equipment: 5 year balloon; 10 – 15 year amortization.
Real Estate: Up to 10 year term with a balloon payment; amortized up to 20 years maximum.
Structure: Up to one-third (33%) of project cost may be financed through the RLF. At least two-thirds (66%) of the project must be financed by other sources, the majority of which must be private. Ten percent (10%) equity is preferred.
Other Program Requirements:
Fees:
- Credit check fee, due at time of full application.
- One percent (1%) origination fee required, due at closing.
- Legal and filing fees are paid by the applicant if loan is closed.
Regulations:
- Federal Civil Rights
- Davis-Bacon
- A.D.A. requirements
- Business must be a “small business” as defined by the Small Business Standards. (i.e. Manufacturing < 250 employees)
Contact: Les Nelson, Economic Development Director 320-235-8504 Ext 241 |
