For-profit businesses operating within our 18-county service area may be eligible for the Business Finance Program. Eligible projects must create or retain jobs that provide a livable wage with benefits, generate new wealth for the region and diversify the economy of southwest Minnesota.
Applicants must have adequate cash flow to service debt, complement Southwest Initiative Foundation’s loan with lending from the private or public sector, and be committed to the 18-county region.
Business Finance loan funds may be used for machinery and equipment, inventory, working capital and real estate.
- Maximum loan amount is $200,000.
- Loan amounts up to $400,000 for projects in the following asset sectors: renewable energy, food and agriculture, bioscience and manufacturing.
- Interest rate determined using a risk-opportunity analysis, loan terms and current market rates.
- Amortization of the loan is based on the life of the assets. Loan maturity will generally be five years but may have extended amortizations if the assets financed warrant. If amortized beyond five years, a balloon payment may be required.
- Must have adequate collateral and may be subordinate only to the interest of the bank as the primary lender.
- Recipients will be charged a one percent loan origination fee plus all costs associated with the loan.
How to Apply
Applicants should contact us early in the project development stage!
For more information, contact:
Business Finance Director
800-594-9480 or 320-587-4848
Applicants should complete a loan application.