Fosston Micro-Loan Program

 

 

Fosston Economic Development Authority

Micro-Loan Program Guidelines

 

  

1. Purpose: The primary purpose of the program is to preserve and promote the vitality of the Fosston business community, promote new or retain existing jobs and businesses, preserve existing business buildings in energy efficient and visually appealing manner.

 

  

2. Eligible Applicants: All retailers, wholesalers, manufacturers, and service businesses would be eligible for the assistance program.  Generally, businesses falling within the SBA’s definition of a small business would be eligible for assistance.  Applicant must have been in business for a minimum of six months to qualify for the program.  All applicants will be subject to a credit check.

 

  

3. Ineligible Applicants: Any use, which the Economic Development Authority board and the City Council, in its sole discretion, determines as not being beneficial to the interest of the City of Fosston, will be ineligible for assistance under this program.  Applicants may be disqualified based on prior history of delinquent loan payments to the City of Fosston and/or F.E.D.A.

 

 

 

 

 

4. Eligible Locations: All properly zoned locations for businesses within the municipal boundaries of the City of Fosston would be eligible.

 

  

5. Eligible Activities: Expansion of existing business, purchase of equipment, inventory, working capital, rehabilitation of existing building or other type of financial assistance will be considered as eligible projects for assistance.  The funds are not to be used for refinancing, interim financing or speculative purchases.

 

 

 

6. Program Priority: The funds available for loans under this program will be utilized on a first come, first serve basis.

 

 

 

7. Approval Authority: The items above are guidelines to be followed by the F.E.D.A. board and the City Council in administering the F.E.D.A. Revolving Loan Fund, from which the F.E.D.A. board and City Council may deviate when such course of action is deemed necessary, prudent, and to be in the best interest of the City of Fosston.  The City Council will make all final decisions with regard to approval or disapproval of applications for funds under this program.  Any changes to this policy must be approved by F.E.D.A. and City Council.

 

  

8. Loan Restrictions: The maximum amount of funds any applicant will be eligible to borrow will be limited to $20,000.  The interest rate for all loans will be 6% with a maximum term of five (5) years.

If you need more information about FEDA's Micro-Loan  Program, contact City Administrator, Cassie Heide at 218-435-1959, or email her at cassie@fosston.com