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HRDC Announces Covid-19 Relief Loan Fund

Headwaters Regional Development Commission and Headwaters Regional Finance Corporation are pleased to announce the rollout of our new Covid-19 Relief Loan Fund. This program is the result of a $3.14 million grant from the federal Economic Development Administration and funded by the CARES Act. The purpose is to help businesses that have been negatively impacted by Covid-19. Flyer for more info

A few notes about the Covid-19 Relief Loan Fund:

  • Eligible borrowers are businesses that have been negatively impacted by Covid-19. Start-ups will be considered if they are filling an essential service in their community.
  • Similar to our existing revolving loan fund, loans must be fully secured. We will consider non-traditional collateral for commercial loans, like personal property
  • Terms are flexible but need to align with the collateral.
  • Starting rates as low as 0% with adjustments made according to project and collateral.
  • Do not need bank participation for these new loans and do not need a bank denial letter.
  • The 1% origination fee will generally be waived but borrowers will be responsible for out of pocket closing costs (attorney’s fees anticipated to range $600 to $1200 depending on collateral).
  • Equity contributions will generally not be required.
  • Loans will be made to businesses in our five county region: Beltrami, Mahnomen, Clearwater, Hubbard, and Lake of the Woods.
  • Loans are available for Working Capital needs.
  • Prohibited Use: Cannot make a loan for purposes already covered by another federal program. For example, if someone received PPP money to cover payroll expenses for a certain timeframe, cannot provide a loan to cover the same expense for the same timeframe.
  • This program has no debt forgiveness feature, and all applications will be assessed on the C’s of credit to determine ability to repay.

Contact: Sarah Linda, Tiffany Fettig at (Underwriter) or Vicky Hetteen at (Support Specialist).