Business Loans

  • A gap lending program, projects require primary lending by a bank.
  • Loans up to $150,000 for new start-ups and $300,000 for expansions.
  • Interest rates, frequently below market, are based upon the merit of the project.
  • Collateral and personal guarantees required.

Product Development Loans

  • Loans are available to new products with an emphasis on new technologies.

Eligible Activities and Use of Funds

  • Value-added manufacturing and processing.
  • Technologically innovative industries.
  • Agri-processing, marketing and specialty crops production.
  • Tourism and information industries.
  • Goods and services that enhance Quality of Place.
  • Funds may be used for working capital, inventory, equipment, land and buildings.
  • Ineligible activities include general retail businesses and conventional agricultural production.

General Policies

  • Funding gaps must exist.
  • 50% financing from private sources required.
  • Minimum down payment of 10% required.
  • Jobs must be created or retained with acceptable wage levels.
  • Minority applicants are encouraged to apply.

Application Process:

  • Business finance applicants complete an Eligibility Review and are notified of project eligibility within 5-10 days.
  • If eligible, applicants complete a business plan, which is reviewed by a loan committee.
  • If the request is approved, the loan is closed promptly.

The entire business finance application process may require four to six weeks from the time an application is received until the loan is closed. Because each business lending situation is unique, NMF requests that applicants contact a staff person.

NMF staff is available to work with applicants in the application process. Interested applicants may contact Diane Morey for assistance.