Please ensure Javascript is enabled for purposes of website accessibility Revolving Loan Funds | Mid-Minnesota Rural Development Commission

The MMDC can help borrowers finance their business purchases and/or operations via two separate revolving loan funds (RLFs). While our original RLF provides gap financing to help businesses, including higher-risk borrowers – those with less collateral or credit – address financing shortfalls, our CARES Act Supplemental RLF gives us the ability to act as the primary lender.

The MMDC Economic Development Director will work with potential borrowers to explain loan terms, which are approved by the U.S. Economic Development Administration, and help them determine which RLF option is right for them.

Figuring out Financing Pencil and Paper

CARES Act EDA Revolving Loans

The Mid-Minnesota Development Commission (MMDC) has received $870,000 from the U.S. Economic Development Administration to provide business loans throughout Kandiyohi, McLeod, Meeker, or Renville Counties.

The purpose of this new revolving loan fund is to provide the financial resources needed to provide business relief, support jobs, and to speed our region’s economic recovery from the Coronavirus/COVID-19 Pandemic.

See more information on terms below.

Interest rates as low as
0%

First payment deferred up to
6 months

Loans ranging from
$7,000- $150,000

MMDC CARES Act Revolving Loan Fund Terms

  • First Payment Deferment: First payment may be deferred up to 6 months, with prior agreement
  • Interest Rate: 0% interest for the first 24 months from the date of closing. Then 2% interest through 120 months from the date of closing. 4% thereafter
  • Loan Application Fee: $50 (due at the time of application submission
  • Legal/Closing Fees: Borrower is responsible for all legal/closing fees (contact MMDC for a general estimate of these costs)
  • No Penalty for Early Repayment
  • Eligible Borrowers: New or existing businesses in Economic Development Region 6E (Kandiyohi, McLeod, Meeker, and Renville Counties)
  • Lending Priority: Businesses or aspiring business owners affected by the Coronavirus/COVID-19 Pandemic are MMDC’s lending priority for this fund
  • Loan amounts, term limits, and origination fees: (see table)

Loan Amount

Loan Term Limits

Low Origination Fees

$7,000 - $12,000

3 yrs. (term beginning with 1st payment due date)

$200

$12,001 - $25,000

5 yrs. (term beginning with 1st payment due date)

$300

$25,001 - $60,000

7 yrs. (term beginning with 1st payment due date)

$20 per $1,000 borrowed

$60,001 - $150,000

15 yrs. (term beginning with 1st payment due date)

$20 per $1,000 borrowed

Contact MMDC Economic Development Director Les Nelson for more information on loan terms, conditions, and required documents: (320) 262-5853 or send us a message.

Note: While terms will be very favorable, these loans must be repaid.
MMDC is an Equal Opportunity Employer and Lender

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