Entrepreneurial Loan Fund
Overview
The Red Wing Port Authority (RWPA) has developed an Entrepreneurial Fund to support the growth and expansion of local business/individuals and attract new business development to the Red Wing Area. This is a limited loan and collateralization can be a financial investment and/or sweat equity.
Loans
- $500 up to $50,000
- Loans requiring financing above $50,000 will be reviewed for standard loan requirements
Eligible Expenditures
- Startup costs
- Product development costs
- Marketing Materials
- Rent
- Working Capital
- Equipment
- Building rehab
Ineligible Expenditures
- Investment of residential Real Estate
- Delinquent taxes
- Refinance debt
- Delinquent loan payments
Review Requirements
- Business Plan
- Ownership and percentages
- Resume of owner(s)
- Personal financial statement(s)
- Personal and Business Federal tax returns
- Personal and Business references
- Financial Statement with projections
- Balance Sheet required
- Business must be located or is relocating in Red Wing
Finance Committee (FC) Guidelines
- The FC is required to review the guidelines during budget review of each year.
- The FC may defer to interest only payment for up to 6 months.
- The FC shall establish terms, based on loan amount and loan type.
- The FC shall establish Collateralization of each loan. Loans may be given without collateralization.
- Interest rates will be based on risk, but will range from Prime + 1% to Prime + 4%, with a minimum interest rate of 7.0%.
- Upon approval of a loan application, the FC shall make a recommendation to the Port Authority Board of Commissioners at its monthly meeting.
- Upon denial of a loan application, the Director of the Port Authority, on behalf of the FC will send a letter stating the reason for denying the loan to the prospective borrower as well as each Port Authority Board Commissioner.
- FC shall establish the reporting requirements for each loan. The minimum requirement will be an annual report due 30 days after the business year end.
