Microloan Fund Program
The Microloan Fund Program is designed to support entrepreneurs, strengthen local businesses, and expand economic opportunities across our region. This program provides flexible financing options for individuals and small businesses that may not qualify for traditional loans.
We take a holistic approach to lending—considering not only credit scores, but also your business plan, character, and potential community impact.
Program Highlights
- Loans up to $50,000
- No primary lender required
- Flexible underwriting that considers alternative credit history
- Designed for startups and growing small businesses
Eligible Uses of Funds
Microloan funds may be used for:
- Equipment purchases
- Furnishings and fixtures
- Working capital
Note: Passive real estate investments are not eligible.
Who Can Apply
To be eligible, applicants must:
- Reside in Big Stone, Swift, Chippewa, Lac qui Parle, or Yellow Medicine County
- Operate a business located within one of these counties
- Be a U.S. citizen, Legal Permanent Resident, or non-citizen with valid work authorization
- Commit to creating or retaining jobs
Loan Requirements
- Minimum 10% equity investment
- Minimum credit score of 620
(Alternative credit history may be considered if unavailable or below threshold) - Maximum loan term of 7 years
- Interest rates determined by program boards
Business Planning & Support
All applicants are required to work with a technical assistance provider, such as:
- Small Business Development Center (SBDC)
- Southwest Initiative Foundation (SWIF)
- SCORE
This support ensures borrowers develop strong business plans, including:
- Cash flow projections
- Repayment ability
- Collateral valuation
Collateral & Guarantees
- All loans must be secured with business and/or personal assets
- Personal guarantees are required from all owners
- Loans over $20,000 require assignment of life insurance
Fees
Borrowers are responsible for applicable loan fees, including a 1% origination fee.
Get Started
If you’re ready to grow your business or launch a new venture, the Microloan Fund Program can help you access the capital and support you need.
Contact us today to learn more or begin your application.
