Eveleth Economic Development Authority Community Development Revolving Loan Fund

Financing

Services: Incentive and Financial Resource Programs

Contact: Jackie Monahan-Junek, City Administrator

Address: 413 Pierce St , Eveleth, MN 55734

Phone: 218.744.7444

Email: eveleth@evelethmn.com

Description:

To stimulate commercial development in Eveleth by providing loans for business development. The City of Eveleth, through its Economic Development Authority (EEDA), provides loans to new or existing Eveleth businesses through GAP financing. These loan funds may also be used for code violation and energy renewal.

Loan Amounts
$1,000 / $150,000 loan based on availability of funds.

Eligible Applicants
The funds are available only to those who need the funds for GAP Financing or have been denied by a loan lender and a review of the following criteria has been completed: Demonstrated repayment ability, equity commitment, adequate collateral coverage, management capability, letter of commitment from primary lending source, or letter of denial and the availability of funds.

Other Funding Required
The program is designed to be gap financing in order to maximize the amount of projects the Eveleth Economic Development Authority can assist with.

Other Special Requirements
All loans will be to businesses within the City of Eveleth & Progress Park.

Provide last three years of financial statements (proforma financial statements for a new business), and complete business and personal credit check authorizations. Owners and encumbrances report done on the property and a letter of commitment from other lenders. (Personal financial statements may be requested). EEDA loan review committee recommendation to EEDA Board with approval from the Eveleth City Council on loans of $25,000 or more.

Allowable Use of Proceeds
Land and building acquisition, land improvements, new building construction, building renovation, machinery and equipment purchase, inventory purchase (not intended as a line of credit or to cover cash flow).

Term of Loan
To be reviewed at the time of application to be consistent with other lending institutions. Maximum of five (5) years with a 10 year amortization Minimum payment of $50 to be repaid monthly.

Interest Rate
4% to market rate

Eveleth Economic Development Authority Community Development Revolving Loan Fund serves the Northland, Arrowhead, Duluth MN Superior WI MSA, and St. Louis county areas.