EVELETH, Minn.—The Iron Range Resources and Rehabilitation Board (IRRRB) Local Business Loan Guaranty program was launched in August 2011 to provide an IRRRB-based financial guaranty to local banks that make loans to existing businesses within the agency’s service area. Under the program, the agency will guaranty up to 75% of a new bank loan, up to a $75,000 maximum guaranty. To date, 16 businesses across the agency’s service area have participated in the program.
“We repeatedly hear from local business owners that increased access to capital continues to be one of their most critical needs for growth,” said IRRRB Commissioner Tony Sertich. “This program was specifically designed to address that need, while helping our local businesses to expand and create new jobs.”
The program allows IRRRB to assist niche businesses that weren’t eligible for agency assistance in the past, provides credit enhancement, and makes bank financing more accessible to existing businesses.
Eligible businesses include manufacturing/assembly businesses, technologically innovative businesses, and businesses that primarily attract expenditures from outside the IRRRB service area, and other businesses that are headquartered and have been operating in the service area, under the same management, for a minimum of two years. Current participants in the program include businesses from the engineering, manufacturing, logging, dining, and retail sectors.
To date, the agency has encumbered $749,280 to guaranty $1.143 million in loans. IRRRB dollars may never be spent, due to it being a loan guaranty program and not direct financing to businesses.
Interested business owners are encouraged to apply for the program by contacting their local bank. They can also contact Steve Peterson, Executive Director of Development, at 218-735-3002 or Steve.Peterson@state.mn.us for any questions about the application process.
IRRRB is a state economic development agency headquartered in northeastern Minnesota whose mission is to promote and invest in business, community and workforce development for the betterment of northeastern Minnesota.