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| Loan Amount |
$50,000-$500,000 |
| Use of Funds |
Operating capital
Fixed assets, land and buildings
Construction or leasehold improvements to accommodate high technology operations
Machinery and equipment for high-volume productivity or high-margin applications
Commercialization of new product launch and marketing
Productivity and process-enhancing software systems |
| Term of Loan |
Variable |
| Rate of Interest |
Negotiated |
| Down Payment (Equity) |
Negotiated |
| How Long Does it Take |
30-60 days |
| Collateral |
Negotiated |
| Personal Guarantees |
Required of principal owner(s) |
| Eligible Projects |
Loans to central Minnesota entrepreneurs to help launch emerging technology ventures and to help established companies integrate proven productivity applications into their business operations and processes. |
| 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. |
| Incentives |
Investments may have convertible options exercised by the
Initiative Foundation as direct loans, royalty or equity positions |
| Fees |
2% origination fee, one-half of which is considered a
nonrefundable loan application fee. The borrower is also
responsible for any legal fees associated with documenting and closing the loan. |
For more information on this program, contact BLADC or visit the Initiative Foundation’s web site.
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