Description/Purpose:
The Northland Foundation in partnership with the Iron Range Resources and Rehabilitation Agency (IRRR) has established a Loan Guarantee Program available to banks acting on behalf of their commercial borrowers. Under the program, a bank will provide standard commercial financing, and this program will guarantee a portion of the loan against deficiency. The Loan Guarantee Program is intended to increase the availability of bank credit otherwise not available based on normal lending criteria.

Loan Amounts:
The loan guarantee is one-half the outstanding loan balance, up to a maximum of $80,000 or 80% of the loan deficiency after expenses, whichever is less.

Eligible Applicants:
For-profit business owner operated businesses engaged in manufacturing, wood products, agriprocessing, information industries, and tourism etc. Funds may not be used for retail development projects and most service businesses.

Other Funding Required:
No other funding required.

Other Special Requirements:
Not applicable.

Allowable Use of Proceeds:
Land and building acquisition; land improvements; building construction and renovation; purchase of machinery and equipment; and working capital (term loans only). Financing may not generally be used for refinancing or the purchase of an existing business, unless associated with an expansion.

Term of Loan:
The bank will set maturity.

Interest Rate:
The bank will set interest rates.

Application Process:
All inquiries to the Northland Foundation Loan Guarantee Program should be directed to:

Name: Northland Foundation
Address: 610 Sellwood Building
202 W Superior Street
Duluth, MN 55802
Phone: (218) 723-4040
Fax: (218) 723-4048
Email: info@northlandfdn.org