Business

Business Loans & Programs

The Kandiyohi County & City of Willmar Economic Development Commission offers loan programs to complement your business’ financing needs. Whether you need assistance with purchasing real estate, equipment inventory, or working capital, EDC staff is here to help your business grow and succeed.

EDC Loan Programs

Microenterprise Loan Fund

A Microenterprise Loan Fund was established by the former Willmar Area Multicultural Business Center and is now owned by the EDC. The purpose of the fund is to provide alternative (gap) financing to for-profit businesses to promote job retention, job creation and the stimulation of private investment in an effort to strengthen and diversify the economy and the tax base of Kandiyohi County. Loans will serve as matching funds to create up to 100% leverage project financing with other borrowing sources to assist existing or new businesses meeting the program eligibility. Loan money is intended to complement, not replace, existing local development and private financing efforts.

Loan Guidelines

  1. Applicants must be for-profit businesses located in Kandiyohi County, meet the eligibility guidelines of the program, and be in an eligible industry category under the Small Business Administration (SBA) guidelines.
  2. Applicants must have adequate collateral and cash flow to service the debt and show additional lending to meet up to the 100% leverage guidelines.
  3. The EDC Finance Committee shall recognize that adequate collateral is not a primary consideration in approving loans.
  4. Applicants must provide a minimum of 10% owner equity as part of the 100% leverage guidelines. EDC participation is not to exceed 50% of total project.
  5. Loan amounts of $2,500-$20,000.
  6. Loan maturity of 1-5 years.
  7. Fixed interest rate of no less than 3% computed as simple interest for the term of the loan.
  8. Applicants must provide with their application a personal credit report for principal owner(s) with 20% or more ownership.

Loan Application (Word)
Loan Application (PDF)

Revolving Loan Fund

A Revolving Loan Fund through the EDC is available to provide alternative (gap) financing to for-profit businesses to promote job retention, job creation and the stimulation of private investment in an effort to strengthen and diversify the economy and the tax base of Kandiyohi County. Loans will serve as matching funds to create up to 100% leverage project financing with other borrowing sources to assist existing or new businesses meet the program eligibility. Loan money is intended to complement, not replace, existing local development and private financing efforts.

Loan Guidelines

  1. Applicants must be for-profit businesses located in Kandiyohi County, meet the eligibility guidelines of the program, and be an eligible industry category under SBA guidelines.
  2. Applicants must have adequate collateral and cash flow to service the debt and show additional lending to meet up to 100% leverage guidelines. The EDC’s Finance Committee recognizes that adequate collateral is not a primary consideration in approving loans.
  3. Applicants must provide a minimum of 10% owner equity as part of the 100% leverage guidelines.
  4. Applicants must provide, with their application, a personal credit report for principal owner(s) with 20% or more ownership.
  5. Loan amount of $5,000-$50,000.
  6. Non-real estate loan maturity of 1-10 years. Real estate loan maturity of 5-15 years.
  7. Fixed interest not to exceed Wall Street Journal prime rate plus 2% commuted as simple interest for a period not to exceed 10 years.
  8. EDC participation is not to exceed 25% of the total project.

Loan Application (Word)
Loan Application (PDF)

Entrepreneurs’ Loan Guarantee Program

The EDC’s Entrepreneurs’ Loan Guarantee Program is intended to increase the availability of credit otherwise not available based on normal lender underwriting criteria due to the newness of the business, lack of equity, collateral valuation or other problems. The program is not intended to refinance existing debt nor absorb the risks associated with a weak or poorly-managed business.

Loan Guidelines

  1. The applicant must:
    • be over 18 years of age;
    • be a resident of Kandiyohi County;
    • be actively involved in the business; and
    • have at least 50% ownership in the business.
  2. The business must be owned and operated by the borrower less than 36 months and be located in Kandiyohi County.
  3. The purpose of the loan must be for general business purposes and be eligible under SBA guidelines.
  4. The minimum loan amount shall be $1,000.
  5. A business or its related entities’ combined loan amount may not exceed $50,000.
  6. The maximum guarantee shall be 80% of the outstanding principal balance of loan(s) under $25,000 and 85% of the outstanding principal balance of loans over $25,000.
  7. A loan administration fee of 1% of the loan guarantee amount shall be paid.

Loan Application (Word)
Loan Application (PDF)

The Kandiyohi County and City of Willmar EDC supports local business growth and can assist with packaging a financing plan that best serves your business and will partner with any lending institution in Kandiyohi County to provide gap financing for new and expanding businesses.

The EDC is ready to work with you on your project and make your project a reality. In addition to the EDC’s loan programs, there are other local, regional and statewide programs that we can help you access:

Translate »