|
|
|
|
|
|
|
|
|
|
|
|
| Ask us anything or offer an opinion. We will e-mail our response in 48 hours or less. |
| |
|
| |
| |
 |
|
|
|
| Home > Businesses |
| |
|
| Business Loans |
| |
The Direct Business Loan Fund is designed to help central Minnesota companies create or retain quality jobs by filling gaps in business financing packages. Targeted industries include manufacturing, technology-based business sectors and value-added agriculture.
For business start-up and expansion projects, Initiative Foundation business financing programs meet the “gap” between the financing a local lender is able to provide and the equity the owner is able to contribute. Financial participation by a local lender is required.
Investment Amount: $50,000 to $250,000
Eligible Investments
- 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
Collateral and Credit Worthiness
- Owner commitment (equity), credit worthiness and capacity for repayment must be shown.
- Personal guarantees from principal owners are required.
- Collateral positions may be subordinate to other lenders in financing packages.
Terms and Fees
- Repayment terms may not exceed 10 years for construction and real estate (amortized up to 15 years), or 5 years for machinery and equipment (amortized up to 7 years).
- Interest rates are determined by a risk-opportunity rating analysis, loan terms and current market rates. (Flexible terms may be available for projects financed using Small Business Administration funds.)
- The Initiative Foundation charges a 1% 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 investment.
Borrower Requirements
- Demonstrated management skills, industry experience and financial aptitude
- A sound business plan with financial projections
- Creation/retention of living wage jobs with broad employee benefits
|
| |
|
|
|
|
