Financial Assistance

Empowering Entrepreneurs in Kandiyohi County

with Customized Business Loans & Programs

As an entrepreneur in Kandiyohi County, you are the driving force behind local economic growth. Finding the right financial resources for your situation can be a challenge. At Kandiyohi County Economic Development (KCED), we help you find the financial assistance package that your business needs to thrive.

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Tailored Loan Programs for Entrepreneurs

Our suite of loan offerings are designed to match your entrepreneurial journey, with an emphasis on promoting job creation and stimulating private investment to fortify and diversify the local economy.

Frequently Asked Questions

This loan fund serves as gap financing for for-profit businesses, promoting job retention, creation, and stimulating private investment. It aims to strengthen and diversify the local economy and the County's tax base. This loan complements other financing, providing up to 100% leverage project financing.

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Microenterprise Loan Fund

This loan service was crafted to provide alternative financing for for-profit businesses in Kandiyohi County. Loan money aims to supplement, not replace, existing local development and private financing efforts.

  • For-profit businesses eligible under the Small Business Administration (SBA) guidelines qualify for loans amounting from $2,500-$20,000, with a loan maturity of 1-5 years and a fixed interest rate of no less than 3%.
  • The loan process involves assessing collateral, personal creditworthiness, and cash flow ability.

Microenterprise Loan Guidelines

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. Applicants must have adequate collateral, personal creditworthiness, and cash flow to service the debt and show additional lending to meet up to the 100% leverage guidelines.

The KCED Finance Committee shall recognize that adequate collateral is not a primary consideration in approving loans. Applicants must provide a minimum of 10% owner equity as part of the 100% leverage guidelines. KCED participation is not to exceed 50% of the total project

  • Loan amounts of $2,500-$20,000.
  • Loan maturity of 1-5 years.
  • Fixed interest rate of no less than 3% computed as simple interest for the term of the loan.
  • Applicants must provide with their application a personal credit report for principal owner(s) with 20% or more ownership.
Download Microenterprise Loan Application

Revolving Loan Fund

This program is designed to provide alternative financing to for-profit businesses in Kandiyohi County.

  • Qualified applicants may receive a loan amount of $5,000-$50,000.
  • Non-real estate loan maturity of 1-10 years, with interest tied to the Wall Street Journal prime rate plus 2%.
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Revolving Loan Fund Guidelines

  • 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.
  • Applicants must have adequate collateral and cash flow to service the debt and show additional lending to meet up to 100% leverage guidelines.
  • Applicants must provide a minimum of 10% owner equity as part of the 100% leverage guidelines.
  • Applicants must provide, with their application, a personal credit report for principal owner(s) with 20% or more ownership.
  • Loan amount of $5,000-$50,000.
  • Non-real estate loan maturity of 1-10 years. Real estate loan maturity of 5-15 years.
  • Fixed interest not to exceed Wall Street Journal prime rate plus 2% commuted as simple interest for a period not to exceed 10 years.
  • KCED participation is not to exceed 25% of the total project.
Download Revolving Loan Application
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Entrepreneurs’ Loan Guarantee Program

This program aims to increase credit availability for new businesses facing challenges such as lack of equity or collateral, or those with less than 36 months of operation time.

  • Applicant must be over 18 years of age, a resident of Kandiyohi County, actively involved in a business which they have 50% ownership.
  • The minimum loan amount offered is $1,000, with a maximum guarantee of 80%-85% of the outstanding principal loan balance.

Entrepreneurs’ Loan Guarantee Program Guidelines

  • 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.
  • The business must be owned and operated by the borrower less than 36 months and be located in Kandiyohi County.
  • The purpose of the loan must be for general business purposes and be eligible under SBA guidelines.
  • The minimum loan amount shall be $1,000.
  • A business or its related entities’ combined loan amount may not exceed $50,000.
  • 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.
  • A loan administration fee of 1% of the loan guarantee amount shall be paid.
Download Loan Guarantee Application

Ready to propel your business forward?

Your small business is a significant part of Kandiyohi County’s prosperity. We are here to support your success. Our team is ready to assist with packaging a financing plan that best serves your venture in Kandiyohi County. You have the vision; we have the resources. Together, we will make your entrepreneurial aspirations a reality.

Contact KCED now for a personalized approach to your business financing needs.

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