Services: Incentive and Financial Resource Programs, Loan Packaging, Loan Providers (Non-traditional)

Contact: Anthony Landgren

Address: 211 W 1st St , Duluth, MN 55802

Phone: 218.529.7562




Arrowhead Regional Development Commission (ARDC), in cooperation with the US Economic Development Administration (EDA) has developed a business loan program which provides below market rate financing for eligible businesses.

The primary objective of the program is the stimulation of private investment in order to create and maintain productive, permanent employment through the establishment of new businesses or the expansion of existing businesses. Loans may be subordinated to the interests of private sector lenders with respect to collateral in order to encourage their involvement.

Loan Amounts
The loan minimum is $10,000 and the loan maximum is $250,000.

Eligible Applicants
For-profit owner operated businesses engaged in manufacturing, value added products, tourism, the office sector and technological innovative industries.

Other Funding Required
Applicants must demonstrate that they will leverage a minimum ratio of two private sector dollars to one ARDC RLF dollar (2 to 1).

Other Special Requirements
Applicants must demonstrate that they will create or retain a minimum of one job per $10,000 in ARDC RLF assistance.

Allowable Use of Proceeds
Land and building acquisition, land improvements, building construction and renovation, purchase of machinery and equipment, working capital and inventory purchase. Financing may not generally be used for refinancing of existing debt or the purchase of an existing business unless associated with an expansion.

Term of Loan
Maturity may not exceed five years for working capital, ten years for machinery and equipment and 20 years for real estate.

Interest Rate
Interest rates will be based on prime rate as published in the Wall Street Journal minus four percentage points, rounded up to the nearest 1/4 percentage point. Minimum interest rate of five (5) percent.

Origination Fee
All loans will include a 1.5% origination fee.

Arrowhead Regional Development Commission Revolving Loan Fund serves the Northland, Arrowhead, Duluth MN Superior WI MSA, Aitkin, Carlton, Cook, Douglas, Itasca, Koochiching, Lake, and St. Louis county areas.