Technical Assistance for Local Revolving Loan Funds

Nine County Revolving Loan Fund

In 1994, the Region Nine Development Commission was awarded grants for loans to businesses for economic recovery from the rain and flooding of 1993. With the need for disaster loans now past, this fund is available for loans to eligible businesses located in the following counties:

Blue Earth

Brown

Faribault
LeSueur

Martin

Nicollet
Sibley

Waseca

Watonwan

Download Nine County Revolving Loan Fund Brochure

Download Nine County Revolving Loan Fund Application

Program Requirements

FEES: $600 Processing fee and 1.0% origination fee required, due at closing.

Federal civil rights, historic preservation, Davis-Bacon and environmental review.

Businesses must be a "small business" as defined by the Small Business Administration Standards (i.e.Manufacturing: generally <250 employees).

Eligible Businesses

Any for profit businesses located in participating counties. Priority given to businesses that employ full time skilled or semi-skilled workers. Minority, women and Vietnam era veteran owned businesses are urged to apply.

Use of Funds

Loans from the revolving loan fund can be used for these purposes:

*Working Capital
*Land
*Buildings
*Equipment

Loan Terms

Loan amount

$10,000 minimum / $100,000 maximum $20,000 - $80,000 maximum (Note: Amount available limited to number
of jobs retained or created.)

Rate

4% below prime rate: minimum 6% - maximum 10%

Working capital

5 Years

Machinery & equipment

10-15 years or useful life

Real estate

20 years maximum

Structure

Up to one-half (1/2) of project costs may be financed through the revolving loan fund. The remaining costs must be financed by other sources (i.e. equity, bank, etc.). Principal payments possibly deferred for up to 12 months.

Six County Revolving Loan Fund

The Region Nine Development Commission has funds available for loans to eligible businesses located in the counties of

Faribault
LeSueur
Martin
Sibley
Waseca
Watonwan

Download 6 County Revolving Loan Fund Brochure

Download 6 County Revolving Loan Fund Application

Program Requirements

FEES: $600 Processing fee and 1.5% origination fee required, due at closing.

Federal civil rights, historic preservation, Davis-Bacon and environmental review.

Businesses must be a "small business" as defined by the Small Business Administration Standards (i.e.Manufacturing: generally <250 employees).

Eligible Businesses

For profit businesses located in participating counties and engaged in the following activities:

*Manufacturing
*Distribution
*Value Added Agriculture

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

Use of Funds

Loans from the revolving loan fund can be used for these purposes:

*Working Capital
*Land
*Buildings
*Equipment

Loan Terms

Loan amount

$10,000 minimum / $60,000 maximum $20,000 - $80,000 maximum (Note: Amount available limited to number
of jobs retained or created.)

Rate

4% below prime rate: with a minimum of 6%

Working capital

5 Years (limited to 10% of revolving loan)

Machinery & equipment

15 years or useful life

Real estate

20 years maximum

Structure

One-third (1/3) of project costs may be financed through the revolving loan fund.
Two-thirds (2/3) of the project must be financed by other sources (i.e. equity, bank, etc.)
One job must be created for each $10,000 of revolving loan funds.

Contact:

Troy Bonkowske                         

Community/Economic Development and Transportation Director

507.389.8881 ext. 2