Business Loans
Small businesses fuel our region. We’re here to provide financial support to individuals who want to start a new business or small business owners who want to expand an existing enterprise.
Program objectives
- Provide appropriate levels of financing for individuals otherwise denied access to small amounts of capital
- Create an environment of entrepreneurial activity as a stimulant for overall growth throughout the region
- Provide access to support small businesses and entrepreneurs services throughout Northwest Minnesota (two tribal nations and 12 counties)
- Ensure a program that fosters innovation, effectiveness, efficiency, and is result-oriented
Loan eligibility and terms
- Retail, service, manufacturing, and other business types are generally eligible.
- Loan funds can be used for equipment, inventory, working capital, and to refinance business debt.
- Real estate purchases are not eligible. Light renovations may be eligible.
- The maximum loan amount is $35,000. Loans up to $50,000 available on a case by case basis.
- Loan terms can vary, most microloans have a maximum of 7 years.
- The current interest rate is 1% under Prime for most funding sources.
- All loans must have collateral and are typically subordinate to a lead bank (if involved).
Application Process
The entire Entrepreneur Development application process may require four to six weeks from the time an application is received until the loan is closed.
Because each business lending situation is unique, NMF requests that applicants submit a financing inquiry form to assist with the process.
Download our loan application.
Additional Requirements
May include the following:
- Tax returns
- Owner resume
- Description of collateral
- Annual revenue and jobs reporting
- Other information as requested
Technical Assistance
Technical assistance is provided in combination with financing—before, during, and after financing is made. This assistance can include: pre-loan counseling, marketing and management assessment, financial planning, and business plan preparation.
After financing is made, technical assistance continues with bookkeeping and accounting assistance, marketing strategy, and management and operations strategy. Specialized needs can also be met through other consultants and specialized training programs.
NMF is an Equal Opportunity Provider and Employer. Funding partners include the Bemidji Downtown Alliance, the McKnight Foundation, Minnesota Department of Employment and Economic Development, U.S. Small Business Administration, USDA Rural Development, Warroad Economic Development Fund, Wells Fargo Diverse Community Capital Program, and other funders.
In accordance with federal laws and U.S. Department of the Treasury policy, this organization is prohibited from discriminating on the basis of race, color, national origin, sex, age, or disability. To file a complaint of discrimination, write to: U.S. Department of the Treasury, Director, Office of Civil Rights and Equal Employment Opportunity, 1500 Pennsylvania Ave. N.W., Washington, DC 20220; call (202) 622-1160; or send an e-mail to crcomplaints@treasury.gov
Frequently asked questions
What is the Entrepreneur Development Program?
Loans are available for small businesses. Technical assistance is also provided before, during, and after the loan repayment term.
What is technical assistance?
Staff experienced in business development provides guidance in all aspects of business ownership: management strategies, and goal setting, marketing, personnel, compliance with taxing agencies, and financial management. Sometimes an expert consultant can be hired to provide higher level expertise.
Where must my business be located?
We serve business in Red Lake Nation, White Earth Nation and in the following counties: Beltrami, Clearwater, Hubbard, Kittson, Lake of the Woods, Mahnomen, Marshall, Norman, Pennington, Polk, Red Lake, and Roseau.
How much money can I get?
The typical loan amount is $35,000. Loans up to $50,000 are available on a case by case basis.
For what may I use the loan proceeds?
Loans may be used for business start-up and expansion, including machinery and equipment, inventory, and working capital. Loans may be used for building upgrades or renovations depending on the funding source. Loans are not to finance real estate.
What other loan terms apply?
Length of loan is based on the assets being financed and the amount of the loan. Depending on the loan funding source, loan terms can be for up to 10 years. The interest rate, fixed for the term, changes every few years. It is currently at 1% under Prime.
Do you have specialty loan programs to support targeted entrepreneurs, such as women-owned businesses?
Our team can help you identify all the opportunities available to you. Please reach out to our loan team to learn more.
My bank has turned me down for a loan. Can you help me?
Perhaps. Our program’s goals and objectives allow us to assist where capital and/or capacity may otherwise limit a bank’s ability to fund.
Should I call you before my local bank?
We encourage you to make use of your existing bank relationships where possible. For loan requests $20,000 or higher, applying to your bank is the first step. Many times we have worked in partnership with area banks.
I have bad credit. Should I apply?
It depends. Past problems are less important when a good track record has been established more recently.
What is the application process?
The NMF team is here to help you through every step of the application process. Staff works with each applicant to provide guidance and suggestions for putting together a strong loan application to present to the Loan Review Committee. The Loan Review Committee makes all funding decisions.
How long does the process take?
The entire application process may require four to six weeks from the time an application is received until the loan is closed and funds disbursed.
Where do I get a grant to start a business?
Grants are money that does not have to be paid back. There are advertisements that offer to help you access government funds and grant money for your business. Most of those ads want you to pay a fee to find out the information, and the only one who actually makes money is the person selling you the information.
There are very limited grant funds available to businesses. The grants that are available are not typically related to the business itself, but through a social service program that is helping someone work toward being self-supporting. These grants are typically limited in use and in dollar amount.
Why doesn’t NMF make grants to start a business?
NMF cannot legally make a grant to a for-profit business without jeopardizing our own non-profit charitable foundation status.