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). These funds can help businesses that may not be eligible for traditional bank financing. Though we prefer to partner with other lenders, MMDC’s Legacy RLF can provide primary financing.  However, our CARES Act Supplemental RLF limits us to work with other lenders with gap financing. Typically $2, from the borrower or via other financing, are required for every one dollar from MMDC (some exceptions may apply and prospective borrowers should be sure to inquire). Eligible borrowers will have their business located in the MMDC region, which includes Kandiyohi, McLeod, Meeker, and Renville counties.

The MMDC Economic Development team will work with potential borrowers to explain loan terms and help them determine which RLF option is the best fit.

Figuring out Financing Pencil and Paper

MMDC Revolving Loan Fund Terms

  • Interest Rate: The current interest rate is fixed at 4.0%. This is subject to change based on the prime rate quoted in the Wall Street Journal prior to the loan closing date.
  • 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 are eligible to apply for funds.
  • 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 Michelle Marotzke for more information on loan terms, conditions, and required documents: (320) 287-1737 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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