Description/Purpose:
This program is intended to promote economic development within and surrounding the City of Two Harbors by providing loans or other financing assistance to businesses, which would locate or expand within the city or in an area having an economic impact on the city. The program is designed primarily for those businesses, which are not able to obtain adequate or appropriate financing from other sources.

Loan Amounts:
Loans may not exceed 50% of the aggregate amount of the project up to a maximum of $200,000.

Eligible Applicants:
The recipient of such loans or other financial assistance may be businesses or other entities organized in any manner permitted by law, consistent with program objectives.

Other Funding Required:
Applicants must leverage a minimum ratio of one dollar in other funding to every one-dollar in Two Harbors Development Commission funding.

Other Special Requirements:
Assistance must result in benefits to the citizens of Two Harbors in the form of jobs and/or tax base.

Allowable Use of Proceeds:
Land and building acquisition; land improvements; building construction and renovation; purchase of machinery and equipment; working capital and inventory purchase and other uses consistent with the objectives of the program. No loans may be made solely to refinance existing debt.

Term of Loan:
Maximum term is five years for working capital, ten years for machinery and equipment and 20 years for land and building.

Interest Rate:
Fixed, typically at 8%.

Application Process:
All inquiries pertaining to the Two Harbors Development Commission Financing Program should be directed to:

Name: Two Harbors Development Commission
Address: 522 First Avenue

Two Harbors, MN 55616
Phone: (218) 834-3489
Fax: (218) 834-5074
Email: thdc@lakenet.com