Financing
Services: Incentive and Financial Resource Programs, Loan Packaging, Loan Providers (Non-traditional)
Contact: Scott Sundvall
Address: 4216 Hwy 53 S , Eveleth, MN 55734-0441
Phone: 800.765.5043
Email: scott.sundvall@state.mn.us
Website: https://mn.gov/irrrb/
Description:Business loan program with the expressed purpose “to create and maintain productive, permanent skilled employment” through the establishment of new businesses or the expansion of existing businesses in the private sector. This program is limited to businesses, which reside or will reside within the Taconite Assistance Area.
Loan Amounts
The maximum participation is $250,000 in any single project.
Eligible Applicants
For-profit businesses engaged in manufacturing/assembly, tourism businesses, which attract tourism expenditures from outside the region and businesses, which produce technologically innovative products.
Other Funding Required
Bank financing is required in participation with Iron Range Resources in an amount not less than the proposed agency loan.
Other Special Requirements
An applicant must have an adequate capital investment (equity contribution) in his or her own business. The agency considers all credit factors in analysis for making prudent lending decisions.
Allowable Use of Proceeds
Land and building acquisition, new building construction, building renovation, land improvements, inventory purchase, purchase of machinery and equipment.
However, if a project involves construction, the agency will participate only in permanent term financing. Interim construction lending must be financed via another lender. Program financing cannot be used for debt refinancing or acquisition of an existing business.
Term of Loan
Negotiated with borrower and bank, but normally matched to the life of the assets being financed.
Interest Rate
The rate of interest shall be no less than the less or of eight percent or an interest rate three percentage points less than a full faith and credit obligation of the United States government of similar maturity.
Who We Are
The Department of Iron Range Resources and Rehabilitation is a State of Minnesota development agency located in Eveleth, Minnesota. Our mission is to promote and invest in business, community and workforce development for the betterment of northeastern Minnesota.
Iron Range Resources & Rehabilitation provides vital funding, including low or no interest loans, grants and loan guarantees for businesses relocating or expanding in the region. Additionally, a variety of grants are available to local units of government, education institutions, and nonprofits that promote workforce development and sustainable communities.
Who We Serve
The Department of Iron Range Resources & Rehabilitation serves the people of northeastern Minnesota. Whether a CEO, a small business owner or entrepreneur, our business development team is here to assist with business growth and development. Our community development works closely with city leaders, city administrators, township clerks, tribal boards and non-profits to support and assist with growing stable, livable and healthy communities. Industry leaders, school district and college administrators partner with our workforce development team to build and retain a well-trained workforce that meets the needs of existing and emerging industries in our region.
Service Area
Iron Range Resources & Rehabilitation’s service area encompasses 13,000 square miles in northeastern Minnesota; 50 cities, 129 townships, and 15 school districts. See a detailed map and listing of school districts and communities (pdf). The service area of Iron Range Resources & Rehabilitation is defined by Minnesota Statute 273.1341.
