Title: Southwest Initiative Foundation Loan Programs
1Southwest Initiative Foundation Loan Programs
2 What is the Southwest Initiative Foundation?
- An independent, nonprofit foundation
- Provide leadership and resources to an 18-county
region - Directors, ambassadors, loan program advisors,
staff located throughout southwest Minnesota
3The Southwest Minnesota Community 156
Communities - 287,627 people
TTTT
4SWIF Mission
The Southwest Initiative Foundation is a regional
community foundation dedicated to advancing
southwest Minnesota through leadership,
relationship-building, program development and
philanthropy.
5SWIF Loan Program
- Supports regional growth by providing gap
financing loans for new and expanding
businesses. Our loan programs, with the
exception of the Micro-Enterprise Loan Program,
are administered by our partner, Prairieland
Economic Development Corporation, Slayton, Minn.
Country Enterprises - Lucan
6Capital Assistance Program Highlights
- Revolving Loan Fund
- Renewable Energy Loan Program
- Small Communities Loan Program
- Regional Centers Loan Program
- JPAC Loan Program
- Technology Development Fund
- Micro-Enterprise Program
7Revolving Loan Fund
Pinske Edge - Plato
- Must be a for-profit business within the eighteen
county region - Must create or retain employment
- Project must include lending from the private
sector - Funds may be used for Machinery Equipment,
Inventory, Working Capital, and Real Estate - Loan size must not exceed 200,000
- Interest Rate will be a fixed at 1 under the NY
Prime rate, with a 6 floor. - Loan origination fee of 1 of total project costs
8Renewable Energy Loan Program
- Must be engaged in renewable energy activities,
either directly or indirectly - Must demonstrate the need for use of the loan
program - Must have a reasonable business plan, and
adequate cash flow to service debt - Maximum loan size of 500,000
- Interest Rate will be determined by a measurement
of risk, on a case by case basis - Loan origination fee of 1 of the total project
costs
9Small Communities Loan Program
Jasper Mini Mall - Jasper
- Small Communities projects may include loans for
business development efforts, including retail
projects and/or loans for non-profit
organizations, small municipal projects, or
school districts, in communities with populations
of 1,500 or less - Loan size must not exceed 50,000
- Interest Rate will be at a fixed rate with a 6
floor - Loan origination fee of 1 of total project costs
10Regional Centers Loan Program
Worthington Block Tile - Worthington
- The business eligible for these loan funds must
be a for-profit business found in Hutchinson,
Willmar, Marshall, or Worthington, Minnesota - Business must be in manufacturing, professional,
or technology sectors - Must create or retain jobs that provide a livable
wage with benefits - Funds used for only Machinery Equipment,
Inventory, and Working Capital - Loan size must not exceed 500,000
- Interest Rate will be a fixed rate at 1 under NY
Prime rate - Loan origination fee of 1 of total project costs
11- The Micro-Enterprise Program of the Southwest
Initiative Foundation was created to help
entrepreneurs develop small businesses and
self-employment opportunities, through
micro-loans and technical assistance.
C.E Signs Designs-Lucan
Tammy Makram Coffey Haus, Luverne
12Micro-Loan Guidelines
Todds Creative Lawn Curbing, Atwater
- Eligible Businesses may be start-ups or expansion
projects - Loan term shall be 6 years or less
- Borrower should provide equity to the project,
and loans will be collateralized - Borrower pays technical costs of the loan (not
more than 100) and filing fees - Maximum Loan amount is 35,000, with other lender
financing of up to 70,000 - Interest rate has a base rate of 9. Working
through Bank Partners may offer a reduced rate on
micro-loan program to qualified applicants - Loan funds can be used for start-up costs,
equipment, inventory, fixtures, or working
capital. Funds cannot be used for real estate
purchases or renovation costs, however that can
be part of the other lender financing.
13Micro-Loan Technical Assistance
- Staff may work directly with the customer, out in
the region, to develop a business plan and
financial projections, to enable the business to
become a reality. In many cases, Small Business
Development Center (SBDC) counselors are also
utilized. - Through a partnership with the SBDC, free
business consulting services are offered at SWIF
Hutchinson office, and free Pre-Venture classes
for starting or expanding a business are offered
in Hutchinson, Marshall and Willmar, and Redwood
Falls. These educational services are open to
any size business project. - After the micro-loan is made, technical
assistance in accounting, business management,
and marketing is provided as needed. Along with
the Program Officer, a Program Specialist is
employed by the Foundation to assist in providing
these services. - Micro-Enterprise technical assistance
programming, including Minority Business
assistance, has been provided through funding
from the Small Business Administration, and the
Otto Bremer Foundation, with additional resources
from SWIF.
14Minority Business Technical Assistance
Adolfo Avila, Jr. SWIF Program Specialist
- SWIF, in partnership with the Small Business
Development Center (SBDC) of SWMSU in Marshall,
is committed to assisting persons in our minority
communities who have an interest in
entrepreneurship as a means of bettering
themselves and their families, and are committed
to learning how to run a business in America. - Micro-Enterprise training, in entrepreneurship
and business management skills, is available to
our new immigrant people of the Hispanic,
Somali/East African, and Hmong / Laotian cultures
in their own languages. -
15Questions and Answers
Southwest Initiative Foundation 15 3rd Avenue
NW Hutchinson, MN 55350 (320)587-4848 or
(800)594-9480 Info on Website
www.swifoundation.org Bernadette Berger,
Micro-Enterprise Program Officer E-mail
bernyb_at_swifoundation.org