Low-interest loans for commercial construction and rehabilitation in northeast Minnesota

The Northland Foundation is implementing a pilot program, along with significant loan capital, to boost commercial construction and rehabilitation on main streets throughout the region.

Northland has $5 million to deploy through 2025. Gap financing will support projects within our seven county/five Tribal nation service area, ideally in partnership with a bank loan.

The program is primarily aimed at small businesses with $1 million or less in revenues. Loans will top out at $500,000 with interest ranging from 3% to 5%. Amortization can stretch over 20 years.

Loan eligibility includes:

• Development
• Redevelopment
• Demolition
• Site Preparation
• Predesign
• Design

• Engineering
• Repair
• Land Acquisition
• Relocation
• Renovation of Real Property
• Capital Improvements

Some of the criteria for consideration include increases to property values, planned or potential job creation, improved energy efficiency, and maintaining economic vitality in rural communities. We are most interested in coming alongside other lenders but, under certain circumstances, could be the sole lender.

Our team is connecting with EDAs and others in the region to answer questions and explore projects. If you have questions about the program or are interested in a face-to-face meeting in your county or community, please reach out to Michael or Amanda.

Priority shall be given to those eligible recipients that have not received more than $10,000 cumulatively from a grant under a Main Street COVID-19 relief grant program or a loan from the Main Street Economic Revitalization Loan Program. Priority may also be given to projects that involve businesses that are operated by Black, Indigenous, or People of Color; veterans; or women.