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| Loan Amount |
Guaranty of bank loan up to $50,000 or 80% of loan, whichever is less |
| Use of Funds |
Operating capital
Fixed assets, land and buildings
Construction or leasehold improvements
Acquisition, renovation or installation of machinery and equipment
Limited refinancing, when necessary to consolidate debt |
| Term of Loan |
Bank loan repayment terms may not exceed five years (amortized up to 15 years) |
| Rate of Interest |
Determined by lender |
| Down Payment (Equity) |
Determined by lender; some owner equity commitment preferred |
| How Long Does it Take |
Guaranty approval process is 7-10 days |
| Collateral |
Determined by lender |
| Personal Guarantees |
Required of principal owner(s) |
| Eligible Projects |
Loans for land, buildings, equipment and working capital to support start-up businesses or business expansions located in or relocating to central Minnesota. Business must add economic development value to the community. |
| Ineligible Projects |
Absorbing risk or losses from weak or poorly managed companies, refinancing existing debt, alcohol related businesses, pornography, speculative ventures or gambling operations, conventional agriculture |
| Preferred Borrowers |
Nontraditional business owners including women, minorities, young adults and applicants with low net worth. Individuals outside these categories are also encouraged to apply. |
| Job Creation Criteria |
Creation or retention of living wage jobs with broad employee benefits is preferred |
| Fees |
1% loan guarantee fee |
