Today: March 27, 2017
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Business Loan

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
Wells Fargo, 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:
Dale Umlauf
West Central Initiative
100 Western Avenue
Fergus Falls, MN
56537 (218) 739-5381 or (800) 735-2239

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
Positively Minnesota

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
Positively Minnesota

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:
Dale Umlauf
West Central Initiative
Norwest Bank Building, Suite 205
1000 Western Ave.
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:
Dale Umlauf
West Central Initiative
Norwest Bank Building, Suite 205
1000 Western Ave.
Fergus Falls, MN 56537
(218) 739-5381 or (800) 735-2239
www.wcif.org