Southwest Initiative Foundation Loan Programs

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Southwest Initiative Foundation Loan Programs
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What is the Southwest Initiative Foundation?

• An independent, nonprofit foundation
• Provide leadership and resources to an 18-county
  region
• Directors, ambassadors, loan program advisors,
  staff located throughout southwest Minnesota

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The Southwest Minnesota Community 156
Communities - 287,627 people
TTTT
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SWIF Mission

The Southwest Initiative Foundation is a regional
community foundation dedicated to advancing
southwest Minnesota through leadership,
relationship-building, program development and
philanthropy.
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SWIF Loan Program

• Supports regional growth by providing gap
  financing loans for new and expanding
  businesses.  Our loan programs, with the
  exception of the Micro-Enterprise Loan Program,
  are administered by our partner, Prairieland
  Economic Development Corporation, Slayton, Minn.

Country Enterprises - Lucan
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Capital Assistance Program Highlights

• Revolving Loan Fund
• Renewable Energy Loan Program
• Small Communities Loan Program
• Regional Centers Loan Program
• JPAC Loan Program
• Technology Development Fund
• Micro-Enterprise Program

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Revolving Loan Fund
Pinske Edge - Plato

• Must be a for-profit business within the eighteen
  county region
• Must create or retain employment
• Project must include lending from the private
  sector
• Funds may be used for Machinery Equipment,
  Inventory, Working Capital, and Real Estate
• Loan size must not exceed 200,000
• Interest Rate will be a fixed at 1 under the NY
  Prime rate, with a 6 floor.
• Loan origination fee of 1 of total project costs

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Renewable Energy Loan Program

• Must be engaged in renewable energy activities,
  either directly or indirectly
• Must demonstrate the need for use of the loan
  program
• Must have a reasonable business plan, and
  adequate cash flow to service debt
• Maximum loan size of 500,000
• Interest Rate will be determined by a measurement
  of risk, on a case by case basis
• Loan origination fee of 1 of the total project
  costs

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Small Communities Loan Program
Jasper Mini Mall - Jasper

• Small Communities projects may include loans for
  business development efforts, including retail
  projects and/or loans for non-profit
  organizations, small municipal projects, or
  school districts, in communities with populations
  of 1,500 or less
• Loan size must not exceed 50,000
• Interest Rate will be at a fixed rate with a 6
  floor
• Loan origination fee of 1 of total project costs
  

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Regional Centers Loan Program
Worthington Block Tile - Worthington

• The business eligible for these loan funds must
  be a for-profit business found in Hutchinson,
  Willmar, Marshall, or Worthington, Minnesota
• Business must be in manufacturing, professional,
  or technology sectors
• Must create or retain jobs that provide a livable
  wage with benefits
• Funds used for only Machinery Equipment,
  Inventory, and Working Capital
• Loan size must not exceed 500,000
• Interest Rate will be a fixed rate at 1 under NY
  Prime rate
• Loan origination fee of 1 of total project costs

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• The Micro-Enterprise Program of the Southwest
  Initiative Foundation was created to help
  entrepreneurs develop small businesses and
  self-employment opportunities, through
  micro-loans and technical assistance.

C.E Signs Designs-Lucan
Tammy Makram Coffey Haus, Luverne
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Micro-Loan Guidelines
Todds Creative Lawn Curbing, Atwater

• Eligible Businesses may be start-ups or expansion
  projects
• Loan term shall be 6 years or less
• Borrower should provide equity to the project,
  and loans will be collateralized
• Borrower pays technical costs of the loan (not
  more than 100) and filing fees
• Maximum Loan amount is 35,000, with other lender
  financing of up to 70,000
• Interest rate has a base rate of 9. Working
  through Bank Partners may offer a reduced rate on
  micro-loan program to qualified applicants
• Loan funds can be used for start-up costs,
  equipment, inventory, fixtures, or working
  capital. Funds cannot be used for real estate
  purchases or renovation costs, however that can
  be part of the other lender financing.

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Micro-Loan Technical Assistance

• Staff may work directly with the customer, out in
  the region, to develop a business plan and
  financial projections, to enable the business to
  become a reality. In many cases, Small Business
  Development Center (SBDC) counselors are also
  utilized.
• Through a partnership with the SBDC, free
  business consulting services are offered at SWIF
  Hutchinson office, and free Pre-Venture classes
  for starting or expanding a business are offered
  in Hutchinson, Marshall and Willmar, and Redwood
  Falls. These educational services are open to
  any size business project.
• After the micro-loan is made, technical
  assistance in accounting, business management,
  and marketing is provided as needed. Along with
  the Program Officer, a Program Specialist is
  employed by the Foundation to assist in providing
  these services.
• Micro-Enterprise technical assistance
  programming, including Minority Business
  assistance, has been provided through funding
  from the Small Business Administration, and the
  Otto Bremer Foundation, with additional resources
  from SWIF.

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Minority Business Technical Assistance
Adolfo Avila, Jr. SWIF Program Specialist

• SWIF, in partnership with the Small Business
  Development Center (SBDC) of SWMSU in Marshall,
  is committed to assisting persons in our minority
  communities who have an interest in
  entrepreneurship as a means of bettering
  themselves and their families, and are committed
  to learning how to run a business in America.
• Micro-Enterprise training, in entrepreneurship
  and business management skills, is available to
  our new immigrant people of the Hispanic,
  Somali/East African, and Hmong / Laotian cultures
  in their own languages.

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Questions and Answers
Southwest Initiative Foundation 15 3rd Avenue
NW Hutchinson, MN 55350 [phone] or
[phone] Info on Website
www.swifoundation.org Bernadette Berger,
Micro-Enterprise Program Officer E-mail
bernyb_at_swifoundation.org