Description/Purpose:
Business loan program with the expressed purpose "to create and maintain productive, permanent skilled employment" through the establishment of new businesses or the expansion of existing businesses in the private sector. This program is limited to businesses, which reside or will reside within the Taconite Assistance Area.

Loan Amounts:
The maximum participation is $250,000 in any single project.

Eligible Applicants:
For-profit businesses engaged in manufacturing/assembly, tourism businesses, which attract tourism expenditures from outside the region and businesses, which produce technologically innovative products.

Other Funding Required:
Bank financing is required in participation with Iron Range Resources in an amount not less than the proposed agency loan.

Other Special Requirements:
An applicant must have an adequate capital investment (equity contribution) in his or her own business. The agency considers all credit factors in analysis for making prudent lending decisions.

Allowable Use of Proceeds:
Land and building acquisition; land improvements, building construction and renovation, purchase of machinery and equipment, working capital and inventory purchase. Iron Range Resources is not a construction lender, but will consider take-out financing upon completion of the project. Primary financing: fixed assets.

Term of Loan:
Negotiated with borrower and bank, but normally matched to the life of the assets being financed.

Interest Rate:
The rate of interest shall be no less than the lessor of eight percent or an interest rate three percentage points less that a full faith and credit obligation of the United States government of similar maturity.

Application Process:
All inquiries pertaining to the Iron Range Resources Bank Participation Loan Program should be directed to:

Name: Iron Range Resources
Address: Economic Development Division
PO Box 441, Hwy 53 S
Eveleth, MN 55734
Phone: (800) 765-5043
Fax: (218) 744-7402
Email: matt.sjoberg@ironrangeresources.org