Services: Incentive and Financial Resource Programs, Loan Packaging, Loan Providers (Non-traditional)

Contact: Michael Colclough, Directors- Business Finance

Address: 610 Sellwood Building 202 W Superior St, Duluth, MN 55802

Phone: 218.723.4040



The Northland Foundation in cooperation with several funding partners has developed a Business Loan Program for the purpose of providing below market rate financing for eligible businesses in Northeastern Minnesota.

The principal objectives of the program are to stimulate private investment, and provide job opportunities particularly for low-income persons through the establishment of new businesses or the expansion of existing businesses. Loans may be subordinated to the interests of private sector lenders with respect to collateral in order to encourage their involvement.

Loan Amounts
The loan maximum is $150,000.

Eligible Applicants
For profit business owner operated businesses engaged in manufacturing, wood products, agriprocessing, information industries, and tourism etc. Funds may not be used for retail development projects and most service businesses.

Other Funding Required
Applicants must demonstrate that they will leverage a minimum ratio of one dollar in private debt to one Business Loan Program dollar (1:1). Private debt must be cash commitments not yet expended.

Other Special Requirements
Applicants must demonstrate there is an acceptable employment impact and that the created jobs will be made available to low income persons. Further, loans can only be made available to businesses that are unlikely to undertake a project without Initiative Fund financing assistance.

Allowable Use of Proceeds
Land and building acquisition; land improvements; building construction and renovation; purchase of machinery and equipment and working capital (term loans only). Financing may not generally be used for refinancing or the purchase of an existing business, unless associated with an expansion or saving an existing business.

Term of Loan
Maturity may not exceed five years for working capital, ten years for machinery and equipment and 20 years for real estate.

Interest Rate
The interest rate is a negotiated below market rate based on the needs of the business and the level of risk incurred.

Northland Foundation Business Loan Program serves the Northland, Arrowhead, Duluth MN Superior WI MSA, Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis county areas.