Business Development - Koochco Inc.
Koochco is a private, non-profit gap financing agency. Koochco's loans are meant to create and maintain permanent employment through the establishment of new businesses or the expansion of existing businesses in Koochiching County. To be eligible for this program, the business must be located within Koochiching County.
Categories
Last assured
07/30/2024
Physical Address
3214 2nd Ave E, International Falls, MN 56649
Hours
8 am - 5 pm Monday - Friday
Voice
Voice
Fax
(218)283-4688
Application process
Call
Eligibility
ELIGIBLE BUSINESS:
- Resort/tourism projects which attract expenditures from outside the region
- Manufacturing and industrial operations
- Service, office sector, health care, cold weather testing
- Retail businesses will be considered case by case
- Wood products
- Agriculture
- Special consideration is also given to businesses locally started and funded, demonstrating renovation and growth potential
The applicant may be for-profit or non-profit and may be new or expansion of an existing business
REVIEW CRITERIA (CONSIDERATION IS GIVEN TO THE FOLLOWING FACTORS):
Eligibility as outlined above
- Quality and number of jobs created and retained
- Demonstrated repayment ability
- Degree of collateral coverage
- Economic impact on area
- Management capability and character
- Degree of business participation in project
- Completeness of business plan
PROGRAM REQUIREMENTS:
All Koochco loans will be term loans. Maximum amortization will be 20 years and active participation will be limited to 5 years in most cases. The policy will require a balloon payment or call provision after the fifth year of the loan.
The Koochco loan will be no more than 50% of the project financing with a maximum loan amount of $40,000; the remainder to be financed by a private lending institution. The interest rate on the Koochco portion will be 1% less than bank rates and follow bank rate structure.
Collateral coverage must satisfy both Koochco and the bank; personal guarantees are required. Demonstrated credit worthiness and commitment of the applicant is required; management experience or other qualifications will be reviewed, as well as marketing plans. Projects that are entirely or primarily a refinancing of existing debt will not be allowed unless such refinancing will result in a significant upgrading or expansion of operations and creation of jobs.
ELIGIBLE USES OF LOAN FUNDS:
Land and building acquisition and improvements
- New building construction and building renovation
- Purchase of machinery and equipment
- Resort expansion of facilities or upgrading of accommodations
- Working capital (not a revolving line of credit)
- Inventory purchase
- Reasonable accounting, legal, architectural, engineering and appraisal fees
Languages
English
Service area
Koochiching County, MN
Agency info
Koochco Inc.
Koochco is a private, non-profit gap financing agency. Koochco's loans are meant to create and maintain permanent employment throught the establishment of new businesses or the expansion of existing businesses in Koochiching County. To be eligible for this program, the business must be located within Koochiching County.
Eligible Business:
- Resort/tourism projects which attract expenditures from outside the region
- Manufacturing and industrial operations
- Service, office sector, health care, cold weather testing
- Retail businesses will be considered case by case
- Wood products
- Agriculture
Special consideration is also given to businesses locally started and funded, demonstrating renovation and growth potential.
The applicant may be for-profit or non-profit and may be new or expansion of an existing business.
Eligible uses of loan funds:
- Land and building acquisition and improvements
- New building construction and building renovation
- Purchase of machinery and equipment
- Resort expansion fo facilities or upgrading of accommodations
- Working Capital (not revolving line of credit)
- Inventory purchase
- Reasonable accounting, legal, architectural, engineering and appraisal fees.