Financing
Services: Incentive and Financial Resource Programs, Loan Packaging, Loan Providers (Non-traditional)
Contact: Scott Sundvall, Development
Address: 4216 Hwy 53 S , Eveleth, MN 55734-0441
Phone: (218)735-3015
Email: Scott.sundvall@state.mn.us
Website: https://mn.gov/irrrb/
Description:Purpose: To provide access to additional capital for growth of viable area companies.
Guaranty Amounts
IRRRB will guaranty 75% of a new bank loan, up to a $75,000 maximum guaranty.
Eligible Applicants
Manufacturing/assembly, technologically innovative, and businesses that primarily attract expenditures from outside the service area, as well as other businesses that are headquartered and have been operating in the service area under the same management for a minimum of two years.
Other Special Requirements
The guaranty will be structured as a shortfall guaranty. All collection options must be pursued prior to the bank drawing on the guaranty.
Allowable Use of Proceeds
All capital expenditures. The loan may be term debt, revolving debt, or a single payment note. Refinancing of existing bank debt and costs associated with the acquisition of another business will not be allowable uses of loan proceeds.
Term of Loan
Maximum term of loan will be five years, with up to two years of interest only payments allowable.
Guaranty Fee
1% annually, paid at the loan origination date, and at each anniversary date.
Application Process
Apply through local banks.
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.
