The Warroad Economic Development Loan Fund was established in 2016. Concerned community members who want Warroad to thrive and grow are working with Northwest Minnesota Foundation to offer low-cost loans for starting a business, purchasing an existing business or adding to product lines and hiring employees.
Terms and Eligibility
- Loans can be used for land, buildings, equipment, inventory, and working capital. Refinancing or retiring existing debt is not allowed.
- Any buisness within the boundaries of the Warroad School District #690 is eligible to apply. Priority will be given to eligible business projects in the City of Warroad.
- Loans will be available for a minimum of $1,000, up to $25,000.
- Loan interest rates will be set on a case by case basis.
- When partnering with the Northwest Minnesota Foundation’s Entrepreneur Development Program or a participating bank, a blended rate may be considered.
- Loans must be secured with collateral, which can be in subordinate position to a lead lender, typically a bank. The collateral requirement may be waived on a case by case basis if applicants request $2,000 or less.
- The basic loan application includes: a business loan application form, complete business plan including resumes of key people, personal financial statement of borrower, relevant tax returns and other data. As needed, other forms and information may be required to complete the application process.
- A loan offer is contingent upon approval from the NMF Loan Committee. Please plan and allow several weeks for funds disbursement for approved loans.
- A loan origin fee of $25.00, along with other loan closing costs, are payable at the time of the loan closing.
- Loan closing costs will vary, depending on the complexity of the project and the type of collateral used for the loan. An estimate can be provided to you prior to loan closing.
- Loan approval is subject to availability of funding.
Robert Maher, Program Officer – Economic Development