BUSINESS LOANS & FINANCING

Kandiyohi County Revolving Loan Fund

A Revolving Loan Fund has been established and is administered by the Kandiyohi County Economic Development Partnership, Inc.*

The Revolving Loan Fund is intended to be a permanent revolving loan fund where money is available for new loans on a continuing basis as loans are repaid. Loans will serve as matching funds to create up to 100% leverage project financing with other borrowing sources.

The interest rate will be 1% below Minneapolis prime rate. The interest rate will be computed as simple interest and will be fixed for a period not to exceed five years and adjusted for a similar period. All loans will be structured to fully amortize over the term of the loan.

Eligible activities include:

• Fixed machinery and equipment
• Building purchase, construction and renovation
• Leasehold improvements
• Land acquisition
• Plant modernization
• Other purpose discretion

Loan applications should be submitted to:

Kandiyohi County Economic Development Partnership, Inc.
312 Fourth Street SW, Suite 2
P.O. Box 1783
Willmar, MN 56201

*The Finance Committee will review applications within ten days after receipt.

Revolving Loan Fund Guidelines as revised November 10, 1998

The following are the eligibility guidelines for the Revolving Loan Fund:

• Real estate and/or equipment purchases
• Limited to manufacturing, industrial or wholesale/distribution-based business in Kandiyohi County (standard industry classification) and shall meet one or more of the following:
  • Generate 50% or more revenue from outside Kandiyohi County
  • Create one job per $15,000 loaned, over a five-year period
• Substantiate a financing need due to the following conditions:
  • Inadequate equity by the owners of the business
  • Inadequate private lender financing
  • Inability to pay market interest rates or term requirements
• Maximum amount of outstanding loans for one borrower--$25,000
• Project funding
  • At least 10% applicant's equity
  • 33% Revolving Loan Fund
  • No more than 57% from other borrowed sources

The purpose of the Revolving Loan Fund is to provide alternative financing methods to promote job retention, job creation and the stimulation of private investment in an effort to strengthen and diversify the tax and industrial base of Kandiyohi County. Program money is intended to complement, not replace, existing local development efforts.

For more information or to obtain application and business plan forms, please call your lending institution or (320) 235-7370.

Participating Kandiyohi County Banks

• Atwater State Bank, Atwater
• Bremer Bank, Willmar
• Concorde Bank - Blomkest, Willmar
• First State Bank of Lake Lillian
• Heritage Bank, N.A. - Pennock, Raymond, Spicer, Willmar
• Home State Bank - Kandiyohi, Willmar
• Lake Region Bank - New London, Sunburg, Willmar
• Prinsburg State Bank
• United Minnesota Bank - New London
• United Prairie Bank, Spicer
• U.S. Bank, Willmar
• Wells Fargo Bank, N.A. - Willmar

Request an application

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