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.
  • Minority, women, and veteran owned businesses are urged to apply.

Use of Funds: Real Estate Purchase, Equipment, Business Expansion, Working Capital

Loan Terms:

Amount: $30,000 minimum / $100,000 maximum
(Note: Amount available limited to the number of jobs retained or created, i.e. Average one job per $15,000 loaned.)

Rate: 4% Floor / Fixed

Terms: Terms may vary depending on the use of funds and analysis of repayment.

Working Capital: 10 years maximum

Machinery & Equipment: Up to 10 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:

Regulations:

• • • 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.

•  

  • • 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