SRDC offers small business loansSLAYTON — The Southwest Regional Development Commission (SRDC) is again offering business loans though its revolving loan fund (RLF).
SLAYTON — The Southwest Regional Development Commission (SRDC) is again offering business loans though its revolving loan fund (RLF).
The purpose of the RLF is to serve as a gap financing tool to directly loan funds to assist retail, service, manufacturing and distribution businesses with fixed asset and working capital financing in conjunction with their bank. The loan rates and terms are favorable to the borrower. At least 50 percent of the total project cost must come from another source. The loans are considered higher risk, because the borrower must not be able to obtain the full project financing from other sources.
To be eligible for a business loan from the SRDC’s RLF Program, the business must be located in the nine counties encompassing Region 8 in southwest Minnesota and must be a “for-profit” business. Priority will be given to businesses in danger of closing, women-owned businesses and veterans. Loan sizes range from $5,000 to $100,000 but must be matched by private funding and are typically ballooned or paid in full after five to seven years
For more information, contact Nan Larson, SRDC Deputy Director, (507) 836-1638.