The WREDC has access to a number of incentive programs at the local level including:

  • Revolving Loan Funds
  • Tax Increment Financing
  • Interest Financing
  • Forgivable Loans
  • Business technical assistance

The WREDC also has access to Minnesota Department of Employment and Economic Development (DEED) Incentive Programs. You can find out more by visiting them on their website here.

The purpose of the WREDC Revolving Loan Fund (RLF) is to provide financial assistance to businesses in Nobles County.

The RLF is available for:
  • Business expansion
  • New businesses
  • May be used for real estate acquisition
  • Equipment purchase
  • Relocation and related building improvements

Criteria for use of RLF:

  1. Equity Requirements – An applicant’s equity participation must equal at least ten and preferably twenty percent of total assets of the business after the new loans and acquired assets, if any are included.
  2. Collateral Position – RLF loans will be in a junior or shared collateral position to the major source of project financing, unless RLF proceeds are the primary source of funds.
  3. Loan Term – The term of a loan should coincide with the term of the private portion of the loan but may be shorter or longer depending on the circumstances.
  4. Interest Rate – The interest on the direct RLF loan will be determined on a case by case basis and set by the WREDC at the time of loan approval based on loan security, business equity, and collateral position.
  5. Accelerated Repayments – The loan should be structured so that the principal amount of the loan would be due and payable upon default or in the event that the business leaves Nobles County. Prepayment discounts may be negotiated.
  6. Eligible Costs – Eligible costs include land, real estate, machinery, equipment, and certain inventory and working capital items. These items are approved by the WREDC depending on business condition. Assets pledged as collateral must be approved by the WREDC.
  7. Private – Public Ratio – The minimum leverage ratio shall be two to one private debt and/ or assets to RLF debt for projects totaling $10,000 or more. For loans smaller than $10,000 the ratio could be one to one. Balance becomes due in full in the event of sale or transfer unless negotiated in advance.
  8. Selection Criteria – A primary objective of this program will be the creation of new jobs within Nobles County.
  9. Loan Review Committee – The WREDC Executive Committee shall server as the Loan Review Committee.
  10. Other Requirements
    • An applicant must provide current records and documentation in a form acceptable to the WREDC. These records will be kept on file at the WREDC.
    • An applicant must provide valid bids, quotes, or appraisals for the work or equipment proposed
    • The WREDC must have available to it projections or pro-forma to support ability for repayment.

Assumptions Concerning the Revolving Loan Program

  1. RLF is intended to encourage industrial, manufacturing enterprises, commercial, retail, and service businesses.
  2. Money from the RLF will be used primarily for “gap financing”. The fund is intended to supplement private funding.
  3. Each loan will be evaluated individually based on its own particular set of circumstances and information obtained from applicants and other sources.

If you are interested in applying you may download the application here.

If you have have any questions related to any of our incentive programs please contact us here or call 507-372-5515.