Hibbing Economic Development Authority Revolving Loan Fund

Financing

Services: Incentive and Financial Resource Programs

Contact: Greg Pruszinske, City Administrator

Address: 401 E 21st St , Hibbing, MN 55746

Phone: (218) 312-1600

Email: gpruzinske@ci.hibbing.mn.us

Website: https://www.ci.hibbing.mn.us/home

Description:

The Hibbing Economic Development Authority (HEDA) business loan program was created with the expressed purpose as follows: to assist in the creation and maintenance of productive, permanent skilled employment through the establishment of new or expanding private sector business located in the City of Hibbing.

Loan Amounts
$50,000 or less

Loan amounts exceeding $50,000 will utilize the Minnesota Community Capital Fund loan program.

Eligible Applicants
The emphasis of this program is to provide assistance to “leaders” of the economy. With this in mind, the following types of businesses have been determined to be eligible for assistance under the program:

a. manufacturing/assembly;
b. tourism projects which attract tourism expenditures from outside the region; and
c. technologically innovative industries.
d. businesses having a significant impact on the community
e. retail/service

The business to be assisted must be a for-profit operation, but may be a new start-up or existing business, and may be organized as a proprietorship, partnership, or corporation.

Other Funding Required
Matching participation from a traditional lender (bank).

Other Special Requirements
The concept of this program is to participate in the financing of eligible project costs by purchasing a portion of a bank loan. Hibbing Economic Development Authority (HEDA) loans are limited to a maximum of 50% participation of financed eligible project costs.

Total project cost may include certain items that are ineligible for HEDA financial assistance, thereby increasing the bank’s portion beyond that of the HEDA.

The HEDA rate of interest on a loan shall be equal to the bank’s interest rate. The interest rate may be reduced by ½% by the HEDA lender, if the borrower achieves and maintains certain employment thresholds for each six (6 FTE) employment positions created, filled and maintained.

Allowable Use of Proceeds
a. Land and Building acquisition
b. Land Improvements
c. New Building Construction
d. Building Renovation
e. Machinery Purchase/Equipment
f. Inventory Purchase

Note: Debt refinancing and acquisition of an existing business are an ineligible use of proceeds.

Term of Loan
Consistent with the bank.

Interest Rate
Consistent with the bank.

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