Encouraging Business Growth and Community Development
The Barnesville community through their
Economic Development Authority and Economic Development
Corporation is committed to their active focus on
business recruitment, retention, and expansion. Through
their relations with regional and state programs,
they are able to offer a wide array of loan and assistance
programs to assist new and exciting business owners.
Barnesville Area
Revolving Loan Fund:
The Barnesville Area Revolving Loan Fund is
a community fund of the West Central Iniative Fund.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Land acquisition, building
acquistion, construction additions, alterations, machinery,
equipment. inventory and other working capital needs.
Eligible Borrowers: Individuals, partnerships,
limited partnerships, and corporations engaged in
for profit and not-for-profit business activities
that create or retain jobs in Barnesville.
Loan Amount: Varies, usually $3,000 per full
time job created. Other factors are amount of funds
laveraged from other sources, increase in market value
of parcels improved by the project, and the amount
needed to fill any financial gaps.
Interest Rate: Generally varies from 4% to
10%.
Term: Negotiable.
Contact:
Barnesville Economic Development Authority
210 Front Street North
PO Box 550
Barnesville, MN 56514
(218) 354-2145 or (800) 354-7570
Barnesville Store Front Improvement
Loan Program:
The Barnesville Main Street Program, offers reduced
rate monies to assist business owners in improving
the exterior of their building store fronts.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Building additions,
remodeling of exteriors including walls, windows,
doors, sign lettering, awnings and similar improvements.
Eligible Borrowers: Building owners and tenants
with leases which permit leasehold improvements.
Loan Amount: $7,000 maximum.
Interest Rate: Prime rate variable.
Term: 5 Years.
All applications will be based on the financial institutions
standard business loan criteria. Upon loan closing,
the applicant must sign a statement acknowledging
that if the business is sold, the loan must be repaid
in full.
Contact:
Midwest Bank, 215 Front St. S., (218) 354-2704
Norwest Bank, 202 Front St. N., (218) 354-2201
Clay County Revolving Loan Fund:
The Clay County Revolving Loan Fund is also a community
fund of the West Central Initiative. It is common
for monies from the Clay County Revolving Loan Fund
to be used in conjuction with monies from the Barnesville
Area Community Fund.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Land acquisition, building
acquisition, construction additions, alterations,
machinery, equipment, inventory and other working
capital needs.
Eligible Borrowers: Individuals, partnerships,
limited partnerships, and corporations engaged in
for profit and not-for-profit business activities
that create or retain jobs in Barnesville.
Loan Amount: $5,000 maximum.
Interest Rate: Generally varies from 4% to
10%.
Term: Negotiable.
Contact:
Nancy Nelson
MN Extension — Clay County
919 8th Avenue North
Moorhead, MN 56560
(218) 299-5020 or (800) 299-5020
Industrial Revenue Bonds:
Administered by the Minnesota Department of Trade
and Economic Development through local units of government.
Type of Funding: Low interest loans through
the sale of tax-exempt bonds.
Eligible Uses of Funds: Land acquisition, building
acquisition, machinery, equipment, working capital,
architecture and engineering.
Eligible Borrowers: Individuals, partnerships,
limited partnerships, profit or non-profit corporations,
tenant operators, developers, and other legal entities.
Loan Amount: Negotiable.
Interest Rate: Varies depending on bond market.
Term: Varies.
Contact:
Barnesville Economic Development Authority
210 Front Street North
PO Box 550
Barnesville, MN 56514
(218) 354-2145 or (800) 354-7570
Midwest MN Community
Development Corporation:
Headquartered in Detroit Lakes, Minnesota.
Type of Funding: Venture capital, loans and
loan guarantees.
Eligible Uses of Funds: Fixed assets, working
capital, inventory expansion financing, and long term
real estate. Preference is given to projects likely
to stimulate job creation and/or improve rural living
standards.
Eligible Borrowers: Individuals, partnerships
and corporations involved in for-profit businesses.
Loan Amount: Up to $150,000.
Interest Rate: Varies.
Contact:
Midwest Minnesota Community Development Corporation
PO Box 623
Detroit Lakes, MN 56502-0623
(218) 847-3191
Minnesota Investment Fund:
Administered by the Minnesota Department of Trade
and Economic Development through local units of government.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Fixed assets, working
capital, and commercial/industrial real estate.
Eligible Borrowers: Individuals, partnerships
and limited partnerships.
Loan Amount: Varied; $500,000 maximum.
Interest Rate: Negotiable, no set rate.
Term: Negotiable.
Contact:
Minnesota Department of Trade & Economic Development
500 Metro Square Building
121 7th Place East
St. Paul, MN 55101-2146
(800) 657-3858
www.deed.state.mn.us/bizdev/InvFd
Minnesota Business Finance Corporation:
Type of Funding: Low interest loans.
Eligible Uses of Funds: Land acquisition, building
acquisition, building additions or renovation.
Eligible Borrowers: Individuals, partnerships
or corporations engaged in for-profit business.
Loan Amount: 40% of project cost, up to $750,000.
Interest Rate: Depends on bond market.
Term: Varies.
Contact:
Minnesota Business Finance Corporation
4140 Thielman Lane, Suite 304
St. Cloud, MN 56301
(320) 225-1685 or (800) 593-0123
www.mbfc.org
Small Business Administration,
SBA:
A federal program administered by local banks.
Type of Funding: Loan guarantees.
Eligible Uses of Funds: Working capital, fixed
assets, and commercial and industrial real estate.
Eligible Participants: Businesses must meet
SBA guidelines.
Contact:
US Small Business Administration
610 C Butler Square
100 North 6th Street
Minneapolis, MN 55403
(612) 370-2324
www.sba.gov
Small Business Development Loan
Program:
Administered by the Minnesota Department of Trade
and Economic Development.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Acquisition of land,
buildings, machinery, equipment, building construction,
renovation or development costs.
Eligible Borrowers: Manufacturing and Industrial
firms.
Loan Amount: $500,000 to $6,000,000.
Interest Rate: Varies on project to project
basis.
Term: Varies; maximum of 20 years.
Contact:
Minnesota Department of Trade & Economic Development
500 Metro Square Building
121 7th Place East
St. Paul, MN 55101-2146
(800) 657-3858
www.deed.state.mn.us/bizdev/SBDLn
Small Enterprise Loan Fund:
Administered by the West Central Initiative.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Start-up costs for
new businesses or business expansion.
Eligible Borrowers: For-Profit businesses,
generally not retail and service business that are
competitive with existing businesses.
Loan Amount: Up to $20,000.
Interest Rate: Generally 1-2% lower than New
York prime rate.
Term: Up to 5 year, negotiable.
Contact:
Jay Larson
West Central Initiative
Norwest Bank Building, Suite 205
220 West Washington Avenue
Fergus Falls, MN 56537
(218) 739-5381 or (800) 735-2239
www.wcif.org
Storefront Revitalization Grant
Program:
Created by the Barnesville Main Street Program, these
grants are intended to encourage the preservation
and beautification of the buildings in the Barnesville
Area business district.
Type of Funding: Matching grant. $1.00 of grant
funds per $3 of private funds.
Eligible Uses of Funds: Any work that enhances
and improves the exterior appearance of the building.
Examples: windows, awnings, signage, lighting, brick
repair work and painting.
Eligible Borrowers: Building owners in downtown
area, as well as those on Highway 9 and 34 corridors.
Grant Amount: $1,000 maximum.
Interest Rate: Generally 1-2% below prime or
competitive market rates.
Approval: Grants are reviewed and approved
on a first come, first serve basis.
Contact:
Barnesville Main Street Program — (218) 354-2479
Tax Increment Financing:
Tax Increment financing is a tool which cities
can use to encourage development by using the tax
increment from new development projects to finance
certain elegible costs of the project. Administered
by the City of Barnesville.
Type of Funding: This is not a loan program.
Eligible Uses of Funds: Land acquisition, demolition,
site preparation, public improvements, planning, legal,
administrative and bonding.
Contact:
Barnesville Economic Development Authority
210 Front Street North
PO Box 550
Barnesville, MN 56514
(218) 354-2145 or (800) 354-7570
West Central Initiative Revolving
Loan Fund:
The West Central Initiative is a 501(c)3 non-profit
public foundation which serves an eleven county area
in West Central Minnesota. A variety of loan programs
are available to assist businesses.
Type of Funding: Low interest loans.
Eligible Uses of Funds: Land acquisition, building
acquisition, construction additions, alterations,
machinery, equipment, inventory and other working
capital needs.
Eligible Borrowers: For-Profit businesses,
generally manufacturers or start-up companies, but
not retail and service business.
Loan Amount: $100,000 maximum up to approximately
$20,000 per job created and not more than 50% of the
project cost.
Interest Rate: Generally 1-2% below prime or
competitive market rates.
Term: Matches the length of term offered by
participating lender in most cases.
Contact:
Jay Larson
West Central Initiative
Norwest Bank Building, Suite 205
220 West Washington Avenue
Fergus Falls, MN 56537
(218) 739-5381 or (800) 735-2239
www.wcif.org
