Financing
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
Email: mike@northlandfdn.org
Description:The Northland Foundation has established a Loan Guarantee Program available to banks acting on behalf of their commercial borrowers. Under the program, a bank will provide standard commercial financing, and this program will guarantee a portion of the loan against deficiency. The Loan Guarantee Program is intended to increase the availability of bank credit otherwise not available based on normal lending criteria.
Loan Amounts
The loan guarantee is one-half the outstanding loan balance, up to a maximum of $80,000 or 80% of the loan deficiency after expenses, whichever is less.
Eligible Applicants
For-profit business owner operated businesses engaged in manufacturing, wood products, agri-processing, information industries, and tourism etc. Funds may not be used for retail development projects and most service businesses.
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.
Term of Loan
The bank will set maturity.
Interest Rate
The bank will set interest rates.
Northland Foundation Loan Guarantee Program serves the Northland, Arrowhead, Duluth MN Superior WI MSA, Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis county areas.
