Northeastern Minnesota
Business Financing Information
Arrowhead Community Economic Assistance Corporation
PROGRAM DESCRIPTION/PURPOSE:
Arrowhead Community Economic Assistance Corporation (ACEAC) is a community-based non-profit providing primary service to Cook, Lake and St. Louis counties, excluding the City of Duluth. ACEAC also provides service to Aitkin, Carlton, Itasca, and Koochiching counties in cooperation with individual communities, other agencies and organizations. Services include community development and business planning, technical assistance, business loans and other types of financial assistance that will benefit low-and moderate-income persons. This includes providing technical assistance coupled with small business loans, a micro-business loan and TA project and a peer group-lending project.
LOAN AMOUNTS:
Preferred range is $10,000 to $50,000 for smaller business loans. Micro-loans are typically $5,000 to $25,000. Peer Group loans can be as small as $100.
ELIGIBLE APPLICANTS:
For-profit businesses, communities, non-profit organizations.
OTHER FUNDING REQUIRED:
ACEAC is limited to financing no more than 50% of the total project cost. The remaining 50% or more must be financed through resources that may include bank participation, owner equity, city loan funds, seller financing, or other sources.
OTHER SPECIAL REQUIREMENTS:
Applicants must complete a pre-application procedure in order to determine if the ACEAC will further consider a request for technical or financial assistance.
ALLOWABLE USE OF PROCEEDS:
Direct loans are preferred. Loan guarantees, and purchase/resale contracts and equity investment is also done on a limited basis. ACEAC will finance fixed assets, equipment, and working capital needs. Start-up businesses, business expansions, and home-based ventures are eligible. Ineligible activities include refinancing, unless essential to job retention, and in conjunction with significant economic benefits; relending activities, most housing activities, with certain exceptions; and most seasonal businesses and organizations, unless the assistance will result in year around operations.
TERM OF LOAN:
Varies by project and use of funds. Typically, three years for working capital, five years for equipment, and ten years for land and building.
INTEREST RATE:
Below market rates, with a current minimum of 8%
APPLICATION PROCESS:
All inquiries pertaining to the Arrowhead Community Economic Assistance Corporation should be directed to:
Arrowhead Community Economic Assistance Corporation
8880 Main Street Bank Building, POB 406
Mountain Iron, Minnesota 55768
(218) 735-8201
Fax: (218) 735-8202
E-mail:aceac@rangenet.com
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