Entrepreneur Development

• 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 be up to six years.
• The current interest rate is 6.5%, fixed for the term.
• All loans must have collateral and are typically subordinate to a lead bank (if involved).

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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 email Tabi or Sean to assist with the process.

Click here to submit a financing inquiry form.

Click here to download the loan application.

May include the following:

• Tax returns
• Owner Resume
• Description of Collateral
• Other information as requested

Business Plan Outline

Cash Flow Template

Personal Financial Statement

Loan Application (Fillable PDF)

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.

Loans are available for small businesses. Technical assistance is also provided before, during, and after the loan repayment term.

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.

We serve businesses located within the 12 northwest counties of Minnesota served by NMF: Hubbard, Beltrami, Lake of the Woods, Clearwater, Roseau, Mahnomen, Polk, Red Lake, Pennington, Marshall, Kittson, Norman.

The typical loan amount is $35,000. Loans up to $50,000 available on a case by case basis.

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.

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 and is currently 4%.

Our team can help you to look into the Wells Fargo Diverse Community Capital program. This opportunity is not just for women, but also for entrepreneurs from many other diverse backgrounds. Loan programs to help small businesses get started, such as NMF’s Entrepreneur Development Program, are available to everyone. Women’s applications are reviewed in the same manner as any other loan application.

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.

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.

It depends. Past problems are less important when a good track record has been established more recently.

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.

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.

NOTE: Due to the COVID-19 pandemic, grant funding may be available from local sources such as your Chamber of Commerce, City and County government agencies. We encourage you to look into what funding you may be eligible for in your local community.

 

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.

NMF cannot legally make a grant to a for-profit business without jeopardizing our own non-profit charitable foundation status.

We encourage you to look into the IDEA Competition which is a great opportunity for you to receive business coaching and potentially win a cash prize to support your business.