The Microenterprise Loan from Southwest Initiative Foundation helps entrepreneurs develop small businesses and self-employment opportunities in the southwest Minnesota counties of Big Stone, Carver, Chippewa, Cottonwood, Jackson, Kandiyohi, Lac qui Parle, Lincoln, Lyon, McLeod, Meeker, Murray, Nobles, Pipestone, Redwood, Renville, Rock, Stearns, Swift, Wright and Yellow Medicine.
The program provides customized support for entrepreneurs through ongoing technical assistance and training as needed for the length of the loan.
Eligible businesses may be start-up or expansion projects including—but not limited to—manufacturing, service, retail and daycare.
Applicants must have a credit history demonstrating a reasonable assurance of loan repayment, a feasible business plan and a project that does not directly compete with existing trade-area businesses, or proof that there is room in the market.
Loan funds may be used for start-up costs, equipment, inventory, furniture and fixtures and working capital.
Loans will be collateralized.
Funds may not be used for real estate purchases, but a mortgage can be given as collateral.
The maximum loan amount is $50,000, with other lending financing not to exceed $100,000. Loan term is 10 years or less (six for equipment), with an 7.5 percent interest base rate.
Bank partners may be eligible for a lower interest rate.
Southwest Initiative Foundation
Address: 15 Third Ave., NW