Working Capital Lines of Credit

The Northland Foundation, in partnership with community banks in the Duluth area, offers working capital lines of credit to eligible businesses and nonprofit organizations. The borrower may draw money from the line of credit and apply payments to a working capital loan, similar to the way home equity loans function.

The operation of the program is governed by a servicing agreement between the Northland Foundation and the bank. In order to qualify, the applicant borrower must open a checking account at the participating bank. The borrower can then electronically draw on its line of credit from an advance account that Northland sets up to fund and accept repayments on loans serviced by the partnering financial institution.

• Lines of credit generally range up to $100,000.
• The borrower only pays interest on money currently in use but has ongoing credit available up to the maximum of the credit line.
• Interest rates are negotiated fixed rates generally equal to or less than the rates charged by commercial banks.
• Maturity is typically 12 months from the date of issue and the line is renewable, subject to acceptable performance, at the discretion of the Northland Foundation.

For more details, please email John Elden, Director of Business Finance, or Kurt Johnson, Senior Loan Officer, or call the Northland Foundation at (218) 723-4040 or 1-800-433-4045.