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.