Overview
Taconite Area Business Relief Loans provide funds to local businesses that have been adversely impacted by the Covid-19 pandemic in the form of low interest loans. The Department of Iron Range Resources & Rehabilitation (IRRR) has contracted with the Entrepreneur Fund to review, process, and close the loan applications. IRRR will have final approval of all loans.
Funds are intended to provide working capital to businesses, however, any legal business purpose is eligible.
Terms
- The maximum loan amount to a business is equal to three months operating expenses, up to $40,000.
- Maximum loans will be 60 months, after a six-month deferment period (accrued interest will be due at the end of the deferment period).
- 2% interest rate
Eligibility
- Existing small businesses based in the agency’s service area.
- That have been in operation for at least one year and were operating on March 1, 2020 (will be required to provide
financial documentation to confirm). - All businesses must intend to open if currently closed in order to be eligible.
- Businesses must be actively managed and loans must be personally guaranteed by primary owners.
- A blanket UCC finance statement must be filed.
Additional Information
- The agency, at its sole discretion, can make exceptions to the one year in operation criteria.
- Funding through this program is intended to supplement, not replace other state and/or federal relief programs. Loan applicants must certify that they have applied for or are not eligible for these programs.
- A 5% origination fee will be paid to the Entrepreneur Fund per loan.
- Eligible disbursements may be funded through December 31, 2021.
Application Process
1. Complete the initial Eligibility Screen.
2. If initial eligibility is approved, you will be invited to begin the application process.
Questions?
If you have questions regarding this program, please submit those via our Contact Form and we will be in touch as soon as possible.
