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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

  1. The FC is required to review the guidelines during budget review of each year.
  2. The FC may defer to interest only payment for up to 6 months.
  3. The FC shall establish terms, based on loan amount and loan type.
  4. The FC shall establish Collateralization of each loan. Loans may be given without collateralization.
  5. Interest rates will be based on risk, but will range from Prime + 1% to Prime + 4%, with a minimum interest rate of 7.0%.
  6. Upon approval of a loan application, the FC shall make a recommendation to the Port Authority Board of Commissioners at its monthly meeting.
  7. 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.
  8. 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.
Fast Fact Image

The 3-story building known as the Wagon Works was built in the 1860's; over the years the Wagon Works building was home to a number of uses and most recently had fallen into a state of disrepair. The City wondered if the building was beyond repair. The community worked with Knudsen's Caramels & Cheesecake to acquire and finance a top to bottom renovation of the Wagon Works building, which now serves as an example of just how one might take a building from a total state of disrepair to a community treasure. Today, the caramel business is stronger than ever and Knudsen Caramels are distributed nationwide.