Laserfiche WebLink
Business Investment Page 3 of 5 <br /> Development Centers are available throughout the Central Minnesota <br /> region to assist new and expanding businesses.For a list of locally <br /> • supported technical assistance providers in the region,please contact <br /> the Initiative Foundation office. <br /> This program of the Initiative Foundation is supported in part by <br /> Minnesota Depaitment of Trade and Economic Development,the <br /> USDA Office of Rural Development,The McKnight Foundation, <br /> other foundations,local units of government,regional utility <br /> companies,and corporate and individual donors. <br /> If you have any questions,please contact Jennifer Boeckman, <br /> Business Finance Specialist. <br /> The Business Investment Loan Program application is several pages <br /> long and is not available for online downloading. To request a <br /> business loan application,please contact the Initiative Foundation <br /> directly. <br /> Top._of page.. <br /> Loan Guarantees <br /> The Initiative Foundation has established a Loan Guarantee Program <br /> available to lenders acting on behalf of their commercial borrowers. <br /> Lenders provide standard commercial financing with this program <br /> guaranteeing a portion of the loan against deficiency.The Loan <br /> Guarantee Program is intended to increase the availability of credit <br /> S otherwise not available based on normal lender underwriting criteria <br /> due to the newness of the business,lack of equity,collateral valuation <br /> or other problems.The program is not intended to absorb the risks <br /> associated with a weak or poorly managed business. <br /> Program Structure <br /> A.Guarantee Amount—The program guarantees up to 80%of the <br /> original loan balance with a$50,000 maximum exposure or <br /> 80%of the loan deficiency plus expenses,whichever is less. <br /> B.Guarantee Fees—A 1%Loan Guarantee Fee will be applied to <br /> the loan guarantee amount.The Loan Guarantee Fee is due <br /> from the lending institution at closing. <br /> C.Record Keeping—On June 30th of each calendar year the <br /> lender will submit to the Initiative Foundation basic <br /> information on each loan in the guarantee portfolio. <br /> Geographic Area of Program <br /> The Loan Guarantee Program is available for business development <br /> projects located within the 14 counties served by the Initiative <br /> Foundation. <br /> Eligible Businesses <br /> In order to be eligible for assistance the business must contribute to <br /> the economic prosperity of Central Minnesota. <br /> Financing Policies <br /> III A. <br /> Allowable Use of Proceeds <br /> 1.Fixed assets,including land and building purchases, <br /> building construction,leasehold improvements,and <br /> http://www.ifound.org/html/businvt.htm 9/5/02 <br />