The Northland Foundation has been approved as a participant in the SSBCI 2.0 Minnesota Loan Guarantee Program (MNLGP), part of the State Small Business Credit Initiative to help lenders mitigate risk so they can increase capital to small businesses.
The MNLGP provides guarantees to enrolled lenders like the Northland Foundation for up to 80% of principal on loans to eligible businesses.
Funds are targeted to businesses with fewer than 500 employees. The maximum loan guarantee amount is $800,000. A fee of 0.25 percent of the guarantee amount is charged for each enrolled loan. The fee is waived for loans to qualified Socially and Economically Disadvantaged Individuals (SEDI)-Owned businesses and for loans with terms of less than one year.
To tap into the program through Northland, a borrower must be a northeast Minnesota small business using loan proceeds for an eligible business purpose. These include startup costs, working capital, equipment, inventory, the purchase, construction, or renovation of an eligible place of business (not for passive real estate investment purposes), and the purchase of any tangible or intangible assets except goodwill.
Lending decisions are made by the Northland Foundation based on available capital and other factors. Reach out to Amanda or Michael with questions or a potential project.