Community/Housing/Economic Development

Since the capitalization of the SRDC Revolving Loan fund in 1995, the SRDC has made 72 loans for a total of $4.2 million. As repayments are made to the pool they continue to be relent to small businesses throughout the region. Businesses in Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, and Rock counties are eligible to apply.

Southwest Regional Development Commission
Revolving Loan Fund Program
FACT SHEET
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PROGRAM PURPOSE
The purpose of the SRDC Revolving Loan Fund (RLF) is to directly loan funds to assist existing retail, service, manufacturing, and distribution businesses with fixed asset and working capital financing.

ELIGIBLE APPLICANTS
The primary business sectors targeted for these loan proceeds will be agribusiness, retail firms, and service sector. Manufacturing companies will also be considered. Businesses must be located in Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood or Rock County. They must be a “for-profit” business. Priority will be given to businesses in danger of closing, women owned businesses or Veterans.

MINIMUM REQUIREMENTS
One job must be created or retained for every $20,000 of loan proceeds from the RLF.

ELIGIBLE PROJECTS
The primary use of proceeds from the RLF will be for fixed assets and working capital financing.

MAXIMUM AVAILABLE
Loans may range in size from $5,000 to $100,000 but must be matched by private funding.

OTHER FUNDS REQUIRED
They must show that they cannot leverage affordable financing from any other means. The RLF must be matched on a one-to-one basis by a bank or other non-Federal source.

INTEREST RATE
Interest rates will be 1% under NY Prime at the time of loan approval, with a 5% floor.

TERMS
Loan repayment is typically 5 to 7 years, depending on the asset financed.

COLLATERAL REQUIREMENTS
The RLF may subordinate to private bank financing. Personal guarantees may be required.

FEES AND OTHER COSTS
A 1.5% Origination Fee for the Loan will be required. Closing legal costs will be paid by applicant. There is a $150 application fee due at the time the application is submitted.

APPLICATION ACCEPTED
On a year round basis.

DISBURSEMENT OF FUNDS
Upon execution of the required loan documents.

For more information on the SRDC Revolving Loan Fund please contact Nan Larson at nanlarson@swrdc.org.

The Southwest Regional Development Commission works with communities to identify their infrastructure needs and funding sources to satisfy those needs. Examples of community development public facilities projects are water treatment, water storage, water distribution, sewer collection, sewer treatment, individual sewer systems, storm sewers, streets, and fire halls. Funding sources that the SRDC works with are the Federal Economic Development Administration (EDA), Minnesota Department of Employment and Economic Development Small Cities Development Program (SCDP), Rural Development (RD) Community Facilities Grant/Loan Program, Public Facilities Authority (PFA) Drinking Water Revolving Fund (DWRF) Loan Program, Public Facilities Authority (PFA) Wastewater Loan Program, and Minnesota Pollution Control Agency (MPCA) Individual On-site Septic System Program.

The Southwest Regional Development Commission assists communities in applying for funds for infrastructure needs and contracts to conduct project administration once the project has been funded.

The SRDC also compiles an annual Comprehensive Economic Development Strategy (CEDS) for the region which includes infrastructure needs survey results.

Development staff can also assist with economic development and business loan packaging.

For more information on Community Development please contact John Shepard at 507-836-8547 extension 103 or jshepard@swrdc.org. For Economic Development please contact Nan Larson at 507-836-8547 extension 108 or nanlarson@swrdc.org.

The majority of counties in Southwest Minnesota have experienced continuous, ongoing population loss over the last thirty years. A large component of this population loss is outmigration, which distorts traditional indicators of regional economic vitality. This year, SRDC and the Upper Minnesota Valley RDC, along with Mid-Minnesota Development Commission, took a closer look at the issue of outmigration in Southwestern Minnesota for the U.S. Economic Development Administration. Considering outmigration as an indicator of distress would create a more complete picture of regional economic dynamics in areas where unemployment and income figures fail to provide paths to future prosperity.

The SRDC serves as a Regional Census Data Center and as such is a resource that maintains economic and demographic databases and make them available to public and private users.

County	1990 Census information		2000 Census Information
County	population	households	population	households
Cottonwood	12,694	5,060	12,167	4,917
Jackson	11,677	4,560	11,268	4,556
Lincoln	6,890	2,704	6,429	2,653
Lyon	24,789	9,073	25,425	9,715
Murray	9,660	3,758	9,165	3,722
Nobles	20,098	7,683	20,832	7,939
Pipestone	10,491	4,078	9,895	4,069
Redwood	17,254	6,554	16,815	6,674
Rock	9,806	3,754	9,721	3,843
Region	123,359	47,224	121,717	48,088

Types of information that is available
1990 Census and 2000 Census of Population and Households by city, township, county; Social and Economic data such as Unemployment rates by County; Income estimates by County; and Housing data.

If you would like to receive Census data please complete the Census Help Request.