Northland Foundation Loans

Loan Products & Applications

The goal of our Business Finance Program is to help establish new businesses and assist with the expansion of existing businesses. We work with for-profit and nonprofit entities. The entity must be located within the seven counties of northeastern Minnesota: Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis, or in Superior, Wisconsin. Download our Lending Eligibility Overview for more details.

For more information, email Michael Colclough, Business Finance Director, or call (218) 723-4040 or 1-800-433-4045.

The Northland Foundation is an equal opportunity lender and a certified Community Development Financial Institution.

Emerging Entrepreneur Loans

Emerging Entrepreneur Loans offer financing to businesses that are majority owned and operated by minorities, women, veterans, low-income persons, and/or persons with disabilities. The Northland Foundation offers these loans in partnership with the Minnesota Department of Employment and Economic Development (DEED). Additional goals of Emerging Entrepreneur Loans are to provide jobs for minority and/or low-income persons, create and strengthen minority business enterprises, and promote economic development in low-income areas.

  • Interest rate, collateral requirements, and other terms of each loan are set by the Northland Foundation. However, the interest rate may not exceed the Wall Street Journal prime rate plus 4%.
  • The State of Minnesota’s share of an Emerging Entrepreneur loan may range from $5,000 to $150,000, with state funds matched at least 1:1 by financing from a bank or other lender.
  • Beginning microenterprises, including retail businesses, may apply for up to $50,000 with no matching funds required.

Business Loan Application is a fillable form pdf once downloaded. If needed, get Adobe Acrobat Reader here.

Business Loans

We provide both direct loans, in which the Northland Foundation is the originator of the note, and participation loans, in which the Foundation purchases a part of a loan from another lender such as a bank or credit union.

  • Range between $50,000 and $500,000.
  • Interest rates are negotiated fixed or floating rates.
  • Term and amortization based on the assets financed, collateral securing the loan, and needs of the business. Amortizations will generally not exceed 20 years. Maturities for longer-term amortizations generally include balloon payments.
  • Loans may be subordinated to the interests of institutional lenders.

Business Loan Application is a fillable form pdf once downloaded. If needed, get Adobe Acrobat Reader here.

Quick Turn Loans

Quick Turn Loans offer financing up to $150,000 matched or exceeded by additional bank financing and secured by fixed assets. Foundation staff members typically make approval decisions within 3-5 business days of receiving project information from the bank. This is a bank-driven program; applicants must work with their bank to initiate a loan.

  • Up to $150,000 in Northland financing, matched by equal or greater bank financing.
  • Qualifying loans are primarily secured by fixed assets such as land and buildings, equipment, etc.
  • 100% loan-to-value financing; the combined total of Northland and bank financing may not exceed 100% of the value or cost of the assets securing the loan.
  • Subordinated participation loans, or direct loans with the borrower's bank providing remaining financing.
  • 3-5 day approval process, based on review of bank credit analysis.

Quick Turn Loan Application is a fillable form pdf once downloaded. If needed, get Adobe Acrobat Reader here.

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