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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 9-counties within Region Nine (Blue Earth, Brown, Faribault, Le Sueur, Martin, Nicollet, Sibley, Waseca and Watonwan).

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 business 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 Nine County RLF can be used for:

• working capital
• land
• buildings
• equipment

Loan Terms

$10,000 minimum/$100,000 maximum
4% below prime rate (minimum 6% – maximum 10%)
working capital = 5 years
machinery and equipment = 10 – 15 years or useful life
real estate = 20 years maximum
structure = up to 1/2 of project costs may be financed through the RLF.  The remaining costs must be financed by other sources (i.e. equity, bank, etc..).  Principal payments possibly deferred for up to 12 months.