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Southwest Initiative Foundation Loan Programs

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Title: Southwest Initiative Foundation Loan Programs


1
Southwest 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

3
The Southwest Minnesota Community 156
Communities - 287,627 people
TTTT
4
SWIF Mission

The Southwest Initiative Foundation is a regional
community foundation dedicated to advancing
southwest Minnesota through leadership,
relationship-building, program development and
philanthropy.
5
SWIF 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
6
Capital 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

7
Revolving 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

8
Renewable 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

9
Small 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

10
Regional 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
12
Micro-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.

13
Micro-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.

14
Minority 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.

15
Questions 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
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