Microenterprise Loan Program
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| Southwest Initiative Foundation provided loan funding to Glacial Ridge Winery in Spicer, Minn. |
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Helps entrepreneurs develop small businesses
and
self-employment opportunities in the 18
counties of southwest Minnesota. The program
provides customized support for entrepreneurs
through ongoing technical assistance and training
as needed for the length of the loan.
Eligible businesses may be start-up or expansion projects
including—but not limited to—manufacturing, service, retail
and daycare.
Applicants must have a credit history demonstrating a
reasonable assurance of loan repayment, a feasible business
plan and a project that does not directly compete with existing
trade-area businesses, or proof that there is room in the
market.
Loan funds may be used for start-up costs, equipment,
inventory, furniture and fixtures and working capital. Loans
will be collateralized. Funds may not be used for real estate
purchases, but a mortgage can be given as collateral.
The maximum loan amount is $50,000, with other lending
financing not to exceed $100,000. Loan term is 10 years or
less (six for equipment), with an 8.5 percent interest base rate. Bank partners
may be eligible for a lower interest rate.
In addition to SWIF’s 18-county southwest Minnesota service area, the Microenterprise Loan Program also serves Carver, Stearns and Wright counties.
Potential applicants should contact the SWIF Microenterprise
Loan Program at 800-594-9480, 320-587-4848 or loans@swifoundation.org for more information or to apply.
Bank Partnership Program
SWIF has a partnership with several banks in the region that have committed to informing small business owners and aspiring entrepreneurs about the Microenterprise Loan Program and assisting them with the application process. Customers can apply for these small business loans directly at participating banks and some loan applicants who qualify may be eligible for a lower interest rate by applying through a participating bank.
Partnering banks include Bremer Banks in Willmar, Marshall, and Redwood Falls; Citizen’s Bank & Trust in Hutchinson; Exchange State Bank in Hills, Ellsworth, Hardwick and Luverne; First Farmer’s & Merchants Bank in Luverne and Pipestone; First Minnesota Bank in Buffalo, Glencoe, Hutchinson, Mayer and Monticello; First State Bank Southwest in Worthington, Rushmore, Pipestone, Edgerton, and Leota; Home State Bank in Willmar, Cosmos, Litchfield, or Hutchinson; Klein Banks in Montevideo and Madison; Minnwest Bank in Redwood Falls, Marshall, Danube, Morton, Belview, Luverne and Beaver Creek; North American State Bank in Willmar; Prairie Sun Bank in Appleton and Milan; and State Bank of Lucan.
The Microenterprise Loan Program is administered and partially funded by the Southwest Initiative Foundation. Additional funding assistance is provided by the U.S. Small Business Administration (SBA) and the U.S. Department of Agriculture (USDA).
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Entrepreneur Educational Opportunities
SWIF and the Small Business Development Center (SBDC) offer entrepreneur education opportunities throughout southwest Minnesota. Starting/Expanding a Small Business Classes and Walk-in Business Consultations are offered monthly in Appleton, Hutchinson, Litchfield, Madison, Marshall, Redwood Falls and Worthington.
View our calendar to find dates and times in your area. Contact SWIF at (800) 594-9480 or info@swifoundation.org for more information.
For more information about the Southwest Initiative Foundation’s Entrepreneurship Initiative, click here. |
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