Loan Programs

  1. SBA 7(a) Guaranteed Loan
  2. SBA 504 Loan Program
  3. USDA Business and Industry
  4. Tax Abatement / Rebate
  5. Minnesota Investment Fund
  6. Small Business Development
  7. Big Lake SAC / WAC Incentive

The program operates through private-sector lenders that provide loans which are, in turn, guaranteed by the SBA (up to 85% of loan) -- the Agency has no funds for direct lending or grants. A maximum loan amount of $5 million has been established. However, the maximum guaranty is generally $13.75 million. Use of proceeds: purchase of real estate, construction, renovation or leasehold improvements, acquisition of furniture, fixtures, machinery and equipment; purchase of inventory and working capital.

Twenty-five (25) years for real estate and equipment; and, generally seven (7) years for working capital.$0 to $150,000 loan: 2% of guaranty.$150,001 to $700,000 3% of guaranty. $700,000 to $1,00,000 3.5% of guaranty. $1,000,000 plus additional 0.25 %$50,000 plus loan - maximum prime plus 2.25% (2.75% if 7 plus years). $25 to $50,000 - maximum prime plus 3.25% (3.75% if 7 plus years). $0 to $25,000 - maximum. prime plus 4.25% (4.75 if 7 plus years).

Interest Type

Interest Type
Amount $
Fixed / variable
Maximum Loan $5,000,000
Determined by four factors:
  • Type of Business
  • Size of business
  • Use of Loan Proceeds
  • Special Circumstances         

  1. Business Loans
  2. Seed Investment
  3. Technology Capital Fund
  4. Environmental Improvement Loan
  5. Property Assessed Clean Energy
  6. EDA Revolving Loan Fund Prog.

The Initiative Foundation offers the following business financing programs to meet diverse regional needs:

  • Direct Business Loan Fund - up to $250,000 for value-added agriculture and manufacturing companies that bring new revenue to communities.
  • Technology Capital Fund - up to $500,000 for emerging high-tech ventures and technologies that increase productivity.
  • Green Business Loan Fund - up to $250,000 for businesses that preserve the environment, reduce energy demands or recycle existing waste streams.
  • Nonprofit Loan Fund - up to $50,000 for the creation or expansion of mission-related earned-income/social enterprise activities carried out by eligible nonprofit organizations. Loan proceeds may be used for working capital, equipment acquisition and/or facility improvements.
  • Lender Match Loan Fund - up to $50,000 for manufacturing, technology, wholesale and other businesses. In partnership with financial institutions, this fund provides crucial capital to minimize the out-of-pocket cash outlay otherwise needed for a down payment on the purchase of equipment or real estate.

The Initiative Foundation places an emphasis on technology-based and green businesses as well as value-added manufacturing and agriculture operations. Nontraditional business owners such as women and minorities are especially encouraged to apply. Business loans are competitive and subject to review by staff and a volunteer committee. Loans may require 90 days to review and close based on complexity and documentation.