5.0. EDSR 09-09-2002 - Laserfiche WebLink

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Initiative Foundation Page 1 of 2 iii f Foundation News �� 3 ..... ... „„, > ..... ..yds •r,x a.,au- <,,,,o»,,...<,a..xw,>kuvmtLututr v ad >,., RECORD BUSINESS LOANS,QUALITY JOBS IN 2002 After tallying its annual investment numbers,the Little Falls- based Initiative Foundation announced that it had reached record totals in business loans and quality jobs created in its 2002 fiscal year. A regional nonprofit grant-maker and business lender,the foundation partnered with central Minnesota banks to award nearly$2.5 million in business loans and guarantees last year— nearly$1.3 million more than in 2001.Perhaps more impressive is that these investments led to the creation or retention of 516 quality jobs,which earn workers average hourly wages of$13.26, including benefits. John Kaliszewski,the Initiative Foundation's director of economic development,said he believes the programs are positively impacting the central Minnesota economy. "We have lending programs for one purpose only—to secure living wage jobs for central Minnesota families,"Kaliszewski said. "Our programs build upon community strengths and a strong regional work ethic to give businesses a chance to succeed in both • rural and urban areas." The Initiative Foundation works with banks and other lenders to fill fmancing gaps for those entrepreneurs whose"high risk-high reward"ventures do not meet standard fmancing requirements due to risk or equity reasons. The Foundation completes a"loan package"by financing the riskiest portion or guaranteeing it against default.High- technology,manufacturing or value-added agriculture businesses can borrow up to$250,000 from the foundation. Small business entrepreneurs,especially women,minorities and individuals with lower incomes,can access$50,000 in the form of a loan guarantee. The foundation also makes an effort to simplify the documentation required during the application and approval process.According to Kaliszewski,this streamlining makes the process more understandable for borrowers and less of a paperwork headache for lending partners. "Because we are absorbing a higher amount of risk,this is truly a not-for-profit,break-even endeavor,"Kaliszewski added. "Some businesses we finance don't make it,but the ones that do really make a difference in communities.Without programs like these, they may never have had a chance to prove themselves." • Since the Initiative Foundation's inception in 1986,its business loan programs have secured more than 5,000 quality jobs across 14 central Minnesota counties. http://www.ifound.org/templates/FoundationNews.cfm?FoundationNewsID=115 9/4/02