Enterprise Fund
Guidelines How to Apply Enterprise Fund Members
PURPOSE
The Northwest Regional Enterprise Fund, Inc. was established to strengthen and diversify the economy of Northwest Minnesota. This is accomplished by providing a source of low interest financing to create, expand, and retain businesses in the area.
The purpose of the Enterprise Fund is to support business activities for which credit is not otherwise available on terms and conditions which would permit completion and/or successful operation or accomplishment of the project.
FUNDING SOURCES
The Northwest Regional Enterprise Fund, Inc. originated through federal funding from the Economic Development Administration in the amount of $1,825,000. It is also supported by state funding through the Minnesota Department of Trade and Economic Development in the amount of $58,000. Additional local matching funds of $392,000 were provided by the seven counties of Region 1, City of Crookston, City of East Grand Forks, City of Red Lake Falls, City of Thief River Falls, Northwest Minnesota Initiative Fund, and the Northwest Regional Development Commission.
Loans are made to businesses when credit is not otherwise available from owner investment, bank financing, and other sources to ensure the successful completion of activities to be financed. Private, for profit businesses are eligible for financing.
Jobs must be created or retained. Financing may not be used for any activity that serves to relocate jobs from one labor market area to another.
The maximum loan amount is $150,000 and the minimum is $5,000. The maximum loan term is fifteen years. Interest rates are set each month. The Enterprise Fund loan will generally not exceed one third of the total project cost. The project must be located within Kittson, Norman, Marshall, Pennington, Polk, Red Lake, or Roseau County.
New businesses must have an equity contribution while existing businesses may contribute additional cash equity, and/or request consideration of the net worth of the business.
Retail, commercial, or service businesses should fulfill a local need for essential goods and services or demonstrate that the project is substantially tourism related.
Other terms and conditions are negotiated depending on the needs of the applicant.
CONTACT:
To discuss a project idea and to obtain more information about the Enterprise Fund, contact Cam Fanfulik, Loan Fund Manager, at the Northwest Regional Development Commission at 218-745-6733.
PRELIMINARY APPLICATION:
Applicants are asked to complete a short preliminary application form. This information is used for an initial review of the project by Enterprise Fund staff. If the project seems to fit the guidelines of the Enterprise Fund, applicants are invited to submit a Standard Application or a Small Application. The size and complexity of the project will determine which application is most appropriate.
STANDARD LOAN APPLICATION:
New businesses and existing businesses requesting over $30,000 will generally complete the Standard Application Form. In this form, applicants are asked to give a detailed explanation of the project including a business plan, financial projections, historical financial statements, and other information.
SMALL LOAN APPLICATION:
The Small Loan is available for projects which request loans ranging from $5,000 to $30,000. Businesses which have been in existence for three or more years and businesses which provide essential services to a community may be eligible for the Small Loan. An overview of the business and the loan request is required.
REVIEW AND CLOSING:
Loan Applications are reviewed by the Loan Committee. Applicants are invited to make a brief presentation to Loan Committee members and respond to any questions they may have. If an application is approved, the loan is closed as soon as possible. The timing of the distribution of funds will depend on the purpose of the loan.
ENTERPRISE FUND MEMBERS
The Enterprise Fund membership is broken into three main committees listed below. All the members make up the full Enterprise Fund which meets annually to share information and update each other.
Gary Rice, Lancaster
Doug Safar, Warren
* Randy Aarestad, Halstad
Ray Safranski, Thief River Falls
James Herdliska, Erskine
Reed Engelstad, Red Lake Falls
Carol Turnow, Roseau* Chairperson
JOB ZONE/ECONOMIC DEVELOPMENT
Duane Lyberg, Hallock
Al Leiran, Ada
Eugene Dufault, Crookston
Dean Vikan, Fosston
Jim Richter, East Grand Forks
Bill Montague, Crookston
Velma Oakland, Red Lake Falls
PROMOTIONS/TOURISM COMMITTEE
Ethel Thorlacious, Stephen
Pam Hetteen, Roseau
Delores Adkins, Ada
Sandra Hapka, Warren
Mary Follett, Thief River Falls
Ann Piersol, Red Lake Falls
Nancy Thompson, Mentor
Liz Valdez, Crookston*Loan Committee Members
**Chairperson
STAFF:
Cameron Fanfulik, Loan Fund Manager
e-mail: cfanfulik@nwrdc.org
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