Description/Purpose:
Great River Energy (GRE) offers a flexible business loan program, which is designed to respond to the various financing needs of rural businesses. This program focuses primarily upon manufacturing and tourism-related businesses, and works in partnership with local banks and other economic development lenders. GRE's Business Development team coordinates all communications with participating lenders, making the loan process as simple as possible for applicants.

Loan Amounts:
The loan minimum is $5,000 and the loan maximum is $200,000.

Eligible Applicants:
Loan applicants must receive electrical service from a GRE member system rural electric cooperative. Loan applicants must be business owners or operators.

Other Funding Required:
GRE's Business Financing Program loans can cover up to 50% of debt-financed eligible project costs. A minimum of 10% owner-equity is required.

Other Special Requirements:
Loans for conventional agricultural production, speculative real estate development and debt refinancing will not be considered.

Allowable Use of Proceeds:
Loan funds may be used to finance the expansion of an existing business or for new business development. Eligible project costs include: land and building acquisition, land improvements, new building construction, building renovation, machinery and equipment, inventory purchase, working capital (only as part of the total loan package).

Term of Loan:
The loan term and interest rate are based on the type of project, use of funds and cash flow needs.

Interest Rate:
GRE typically matches the loan term and interest rate offered by other participating lenders, but will consider below market rate financing in response to specific borrower needs.

Application Process:
All inquiries pertaining to the GRE Business Financing Program should be directed to:

Name: Great River Energy
Address: Business Financing Program
PO Box 78
Sandstone, MN 55072
Phone: (888) 539-5265
Fax: (320) 245-0216
Email: tlambrecht@northspan.org