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



Royalty Investments are flexible loans designed for higher risk projects that do not qualify for other financing options. The types of businesses that could benefit include start-ups, highly leveraged businesses and entities with temporary cash flow issues that cannot be addressed through traditional financing sources.

Loan Amounts
Generally limited to $100,000.

The structure of a Royalty Investment involves repayment in two ways. First, repayment is made in the form of a low-interest promissory note. Second, repayment is also tied to a percentage of earnings and cash flow (the royalty). The amount of the royalty payments due over time usually does not exceed the total of the original investment

Eligible Applicants
Applicants must demonstrate long-term financial potential and a strong likelihood of repaying the investment from profits and cash flow.

Major features include deferral of principal payments, low interest rates and the sharing of some profits with the Northland Foundation.

Allowable Use of Proceeds
Product development and working capital.

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