Business Loan Program
Up to $200,000
SMIF’s Business Loan Program works in partnership with local lending institutions, economic development organizations and government agencies to help “fill the gap” between available and necessary financial resources.
Contact Marcia Haley, Senior Lending Director, at marciah@smifoundation.org or 507-214-7021 for more information or to obtain an application.
Pictured: Loan client, Custom Iron in Zumbrota.
The quick facts:
Eligibility Requirements
The Business Loan Program targets economic development opportunities to six key areas: bioscience, renewable energy, food/agriculture, manufacturing, and healthcare.
Eligibility Criteria
- Financial participation by local lender is required
- Demonstrated management skills, industry experience and financial aptitude
- Sound business plan with financial projections
- Adequate cash flow to service debt
- Ability to secure loan with tangible collateral
- Creation or retention of living-wage jobs with employee benefits
- Contribution to the region’s economic competitiveness
- Committed to and located in SMIF’s 20-county region
Use of Funds
- Building acquisition
- Expansion
- Machinery/Equipment
- Inventory
- Working Capital
Loan Terms
- Loans will be considered up to $200,000; cannot exceed 50 percent of the total project cost
- Interest rates are determined on a case-by-case basis; typically based on market rates
- Loans can be amortized up to 15 years; balloon in 5 years
- Loans need to be fully secured; may be subordinate to the security interest of a bank as primary lender
- Personal guarantees and assignments of life insurance equal to the amount of the loan are generally required
- Loan recipients will be charged a one percent origination fee and all costs of filing, credit reports, searches and attorney fees incurred by SMIF must be paid at closing
Application Process
- Business Loan Application
- Current business plan
- Two years of business financial statements (existing businesses)
- Two years of business income tax returns (existing businesses)
- Cash flow projections for 24 months
- Personal financial statement(s) of the principal owners
- Two years personal income tax returns of the principal owners
Business Loan Client Stories
Loan Client Spotlight: Waseca Morgan’s Meat Market
Waseca Morgan’s Meat Market received a Business Loan from Southern Minnesota Initiative Foundation in 2024. They were able to expand their building with these funds, allowing them to offer more specialized services for customers.
Loan client spotlight: The Lux MedSpa
The Lux MedSpa is an aesthetics practice that started out as a mobile operation, then moved to a brick and mortar in Dundas, and has now grown to a location in Northfield. SMIF provided a Business Loan in 2021 to aid in their growth.
Loan Client Spotlight: Twisted Chicken
When the owners of Twisted Chicken wanted to grow their business from a food truck into a brick-and-mortar location, SMIF was there to help with financing.
Loan client spotlight: Picklebarn
In 2022, Sidney and Mitch Elofson started their dream business. They opened up an indoor pickleball facility in Mankato with the help of a Business Loan from SMIF.
Loan client spotlight: Black Frost Distilling
When Nate and Jace started dreaming about opening a distillery to make premium bourbon, rye and single-malt whiskeys in New Ulm, they could never have imagined how long the journey would be. In the summer of 2022 they were able to officially turn their dream into reality with the help of a Business Loan from SMIF.
