West Central Initiative’s loan program to assist businesses
News | Published on November 19, 2024 at 4:35pm GMT+0000 | Author: Tucker Henderson
0West Central Initiative has supported regional growth through tailored loan programs since 1986. These programs fill financial gaps with flexible, community-focused solutions. “Gap financing” helps businesses secure the capital needed to start, expand, or sustain operations when full funding isn’t available.
“Our role is to support community projects that need capital to move forward,” said Greg Wagner, West Central Initiative’s Director of Business and Economic Development.
The PROMISE Act Loan Program, launched by the Minnesota Legislature in 2023, is the organization’s newest offering. It supports construction and site improvements with low-interest loans up to $300,000. “The PROMISE Act shows the State’s commitment to helping small businesses in greater Minnesota,” Wagner noted. “It’s perfect for those looking to enhance physical spaces or improve energy efficiency.” The program prioritizes projects led by women, veterans, BIPOC entrepreneurs, and businesses in underserved areas.
West Central Initiative’s loan offerings include:
• PROMISE Act Loans: Up to $300,000 in funding is available for business owners and nonprofits focused on construction, site improvements, or renovations. To be eligible for this program, the business must have filed tax returns in 2021 and have gross revenue of $1 million or less in 2021.
• Small Enterprise Loans: Loans from $1,000 to $50,000 are available for retail, service, manufacturing, and startup businesses without a bank financing requirement.
• Access to Capital Loans: West Central Initiative matches bank loan amounts up to $75,000 for expansions and improvements.
• Child Care Loans: Loans up to $3,500 are available for home-based providers to support regional child care needs, and additional financing is available for center-based operations.
• Business and Industry Loans: Established businesses in manufacturing, technology, agriculture, and healthcare can obtain loans between $20,000 and $300,000.
• Good Food Loans: This fund supports small-scale farmers by offering low-interest loans of up to $15,000 for inventory, supplies, and equipment.
West Central Initiative collaborates with community banks, economic development agencies, and local governments to offer these flexible financing options, helping to close funding gaps for projects that might otherwise face barriers.
For additional information or to begin the loan application process, potential applicants are encouraged to visit www.wcif.org/loans/loan-applications.
West Central Initiative is an equal opportunity provider, lender, and employer supported by partnerships with the McKnight Foundation, the Minnesota Department of Employment and Economic Development, the U.S. Department of Commerce, and USDA Rural Development.
West Central Initiative is a regional community foundation and an economic development organization serving the nine west central Minnesota counties of Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and Wilkin and a portion of White Earth Nation. Through philanthropy and planning, WCI fuels insight and action for the benefit of our region and our world. Since 1986, WCI has provided more than $59 million in loans and approximately $82 million in grants to businesses and organizations. Learn more at wcif.org.