Emerging Entrepreneur Loan Program

Emerging Entrepreneur Loan Program

Up to $15,000

The Emerging Entrepreneur Loan Program (EELP) supports the growth of businesses owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities.

For an application, please contact Molly Bartels Roth, lending director partnerships and technical assistance, at mollyb@smifoundation.org or 507-214-7020.

Pictured: Loan client, China House Café in Truman.

The quick facts:

Eligibility Requirements

Loans are available for startup or existing businesses based in Minnesota and owned and operated by minorities, low-income persons, women, veterans and/or persons with disabilities.

Eligibility Criteria

• Demonstrates a need for financing through a sound business plan
• Projects sufficient income to repay the loan within an appropriate time frame
• Demonstrates good character and a strong commitment to a business plan
• Demonstrates an inability to obtain sufficient financing from a traditional lender
• Non-citizens must provide copy of Alien Registration Card (both sides)

Use of Funds

Startup and expansion costs, including normal expenses such as machinery and equipment, inventory and receivables, working capital, new construction, renovation, and site acquisition.

Ineligible Use of Funds

Refinancing of existing debt is not permitted. No loans to liquor stores or establishments primarily selling liquor made off site, stores primarily selling tobacco or electronic smoking products, gambling operations, or adult oriented businesses.

Loan Terms

• Interest rates determined on a case-by-case basis
• Sharia-compliant financing available
• Maximum loan term is six years
• Sufficient collateral required
• Personal guarantees are generally required with business entity
• Fees: Loan recipients are charged a $100 processing fee that must be paid at closing with all costs of searches, credit reports, filings and legal fees incurred by SMIF

Application Process

• EELP Application
• Current business plan
• Cash flow projections for 24 months
• Personal financial statement(s) of the principal owners
• Two years of personal income tax returns of the principal owners
• Two years of business financial statements and income tax returns (existing businesses)

Minnesota Department of Employment and Economic Development (DEED) is the sponsoring agent for the Minnesota Emerging Entrepreneur Fund.  DEED has the final approval for all applications.