How to Apply

The Northland Foundation's Business Finance Program is targeted to assist in the establishment of new businesses and the retention or expansion of existing businesses. Both for-profit and nonprofit businesses may qualify. Business must be located in the seven counties of northeastern Minnesota: Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis.

Financing products include Business Loans, Royalty Investments, and Loan Guarantees. Applications are processed by the Business Finance Program staff. A technical advisory committee reviews each loan request and makes a recommendation to the Northland Foundation Board of Trustees. The Board of Trustees makes all final loan approval decisions. You can download business loan applications here. Applications received by the first of any given month usually begin the review process during that month.

Additional Information

Types of Assets Financed – The Northland Foundation provides a full range of debt financing including loans for fixed assets such as land, buildings, and equipment; working capital; and refinancing of existing debt (subject to certain limitations).
Other Project Investments – Other complementary project investments consisting of equity capital, bank financing, development loans, or other contributions such as land, in-kind, etc. are generally a prerequisite to obtain financing through the Northland Foundation.
Collateral and Personal Guarantees – Collateral may include the full range of business assets, as needed, and may be subordinated to the interests of institutional lenders. Personal guarantees are also required from owners with a significant ownership stake.
For-Profit Businesses – Qualifying for-profit businesses generally are entities that, through their operations, channel non-local dollars into Northeast Minnesota’s economy.
Nonprofit Businesses – Nonprofit organizations that qualify are those whose focus is consistent with the Northland Foundation’s mission, such as affordable housing initiatives, enterprise development, and sustainability initiatives.
Credit Requirements – To qualify, applicants must demonstrate they are creditworthy. They also must meet certain social criteria such as leveraging private sector investments, providing important services that enhance rural communities, creating and/or retaining quality jobs, employing disabled and/or disadvantaged individuals, or employing moderate-income and low-income persons.

For more information on the Business Finance Program please contact John Elden, Director of Business Finance, at (218) 723-4040 or 1-800-433-4045 or by e-mailing John Elden.