Lending—With a Mission
As a certified Community Development Financial Institution, or CDFI, the Initiative Foundation works to create economic opportunity throughout Central Minnesota by lending funds to locally owned businesses. The Foundation’s lending initiatives play a crucial role in promoting economic development, revitalizing underserved communities, and fostering financial inclusion.
By providing access to capital and support to borrowers who may face barriers, CDFIs like the Initiative Foundation and its Impact Fund help to create opportunities for economic growth and empowerment in disadvantaged areas.
Helping Central Minnesota Prosper
Since its founding, the Initiative Foundation—powered by you and a host of regional, state and national partnerships—has witnessed the following results:
$524 Million
Investments leveraged through lead-bank partnerships
$69.7 Million
Gap, direct and microloan lending
14,860
Jobs created or retained
Find a Loan to Meet Your Needs
Initiative Foundation lending programs combine financial assistance with a social mission by providing borrowers with wrap-around supports to ensure their success.
Gap Loans
Gap lending at the Initiative Foundation is a partnership between the borrower, a lead lender and our lending team. Gap loans “fill the gap” between what a bank can provide and what the borrower needs to remain solvent on a business-investment project.
Direct Loans
By providing access to affordable capital and support, CDFIs like the Initiative Foundation help individuals and organizations overcome barriers, stimulate local economies, and foster greater inclusion in communities that have traditionally lacked access.
Microloans
Initiative Foundation microloans provide an alternate financing option and play a crucial role in supporting entrepreneurship, fostering economic self-sufficiency, and creating opportunities for individuals and small businesses in underserved communities.
Technical Support for You
Lending programs at the Initiative Foundation go beyond just providing capital. We also provide technical support to help borrowers succeed. Support can come in many forms, from business planning and credit counseling to other forms of education to bolster borrowers’ financial and business-management capacity.
Lending FAQs
Get the basics on what it means to partner with the Initiative Foundation for patient, flexible capital.
What types of loans does the Initiative Foundation offer?
We offer gap loans, direct loans, and microloans to help businesses access the capital they need to grow. Gap loans bridge the difference between what a traditional lender can provide and what your project requires. Direct loans provide affordable capital for qualifying small businesses and individuals, and microloans support entrepreneurs with limited access to traditional financing.
Who is eligible for a loan?
Eligibility varies by loan type, but generally applicants must operate (or plan to operate) a business in the 14 counties and two Native nations served by the Initiative Foundation, demonstrate a viable business plan, and work with a lead lender when required.
How much can I borrow?
Loan amounts depend on the loan program and your business needs. Microloans typically range from several thousand dollars to tens of thousands, while gap and direct loans may be larger depending on the project.
What can loan funds be used for?
Loan proceeds may be used for approved business purposes such as working capital, equipment, inventory, expansion, real estate, and other investments that support business growth.
Do you offer support beyond lending?
Yes. Our lending programs are paired with technical assistance, including business planning, financial education, and one-on-one support to help businesses succeed.
How do I apply for a loan?
The process begins with contacting the Initiative Foundation lending team. We will help identify the right loan option and guide you through the application and documentation process.
What business support services are available?
We provide business training, advisory services, financial literacy tools, marketing guidance, and connections to regional partners, including Small Business Development Centers.
Are business support services free?
Many resources and training tools are free to access. Some advisory services are provided through partner organizations at no cost to the business owner.
What is the Enterprise Academy?
The Enterprise Academy is a 12-week business training program designed to help entrepreneurs develop and refine their business plans. Graduates may be eligible for microloans and continued support.
What areas do you serve?
Our lending and business support services are available across Central Minnesota, including 14 counties and two Native nations.
How do I get started?
Contact the Initiative Foundation team through our website to discuss your business needs and explore available lending and support options.
Upload Loan Documents
Upload your requested loan documents to our secure upload space. Contact a member of our lending team (below) with questions!
Meet the Lending Team
Contact us for more information on business lending options.
Download a fact sheet to learn more about business financing.
News
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