Services: Incentive and Financial Resource Programs

Contact: Brenda Nyberg,

Address: 301 Walnut Ave 106, Carlton, MN 55718

Phone: 218.384.9597



Carlton County initiated the Economic Development Loan Fund to stimulate private investment and economic diversification in Carlton County by providing financing to new and expanding businesses in Carlton County. The program seeks to enhance our business ability to create and preserve jobs, increase property tax revenue, and continued community development.

Loan Amount
Loan requests will be reviewed for a minimum of $5,000. The County can participate to a maximum of 50% participation of the financed eligible costs and or a maximum amount of $100,000.

Eligible Applicants
Applicants receiving financing must be for-profit or non-profit businesses located within the boundaries of Carlton County. Applicants may be start-ups or expansions involved in a value-added operation including manufacturing, wholesale, agricultural processing, resorts, tourism related businesses information industries, and other technologically innovative businesses. Retail/service businesses are eligible but care will be given as not to harm existing retail/service business. Refinancing of construction financing must be approved through a pre-application review prior to building expenses being incurred. Other businesses that will create jobs and tax base will be eligible.

Key Review Considerations
Several factors come under consideration in the review process relating to the basic credit decision. Applicants must be prepared to:

  • Demonstrate creditworthiness;
  • Prove repayment ability:
  • Provide an acceptable level of personal equity; (minimum 10%)+ Pledge adequate collateral to secure the loan (may be subordinate position to bank lender);
  • Establish strong management capability;
  • Personally guarantee the loan;
  • The Carlton County loans leverage other private investment, not just public funds. Limit total public funds to 50% of a project.

In addition to these credit factors, the nature of the Carlton County Economic Development Loan Fund dictates additional key review considerations. These factors are critical due to the high demand for the limited funds and are important in determining the level of Carlton County's financial participation. Applicants must demonstrate that they meet or exceed one or more of the following:

  • The project will create or retain jobs.
  • Carlton County's financial assistance is necessary to the viability of the project.
  • In addition to job creation, the project will have an additional economic impact on the area; which would include, but is not limited to, creating new property tax revenue.
  • The project has proven/established community development.

Allowable Use of Proceeds
Loan funds may be used for the following: working capital, land and building purchase, site improvements, building construction, building renovation and leasehold improvements, machinery and equipment acquisition.

Interest Rate
The interest rate on the County's purchased participation will generally be set at an interest rate of the Wall Street Journal Prime less one percent (1%) rounded up to the nearest one-half percent. The interest rate is determined at the time the participation loan is approved by the County and may be increased depending on a loan risk assessment.

Carlton County Revolving Loan Fund serves the Northland, Arrowhead, Duluth MN Superior WI MSA, and Carlton county areas.