Grant Awarded to Southwest Initiative Foundation

Minnesota Business Finance Corporation (MBFC) awarded a grant of $1,500 to the Southwest Initiative Foundation (SWIF) in Hutchinson, MN.  Nadene Kruize, Senior Vice President of MBFC presented the check to Diana Anderson, President and CEO of SWIF.

MBFC is proud to partner with Anderson to support the SWIF and their efforts with the 2016 Grow Our Own Summit.  This summit brought together 500+ civic, business and community leaders to raise awareness, disseminate research and key information fostering conversation about the opportunity gap facing the southwest region of Minnesota.

(Pictured: Diana Anderson, President and CEO of Southwest Initiative Foundation
and Nadene Kruize, Senior Vice President of MBFC)


A key focus of this event was addressing approximately one in six southwest Minnesota children live in poverty. SWIF has made a strategic decision to hone the focus of their work and align efforts to support all southwest Minnesota kids and the communities they call home.

For more information about SWIF and Grow Our Own cause please visit their website  by clicking the link here:  SWIF

Please contact Tom Saehr, President & CEO of MBFC, for more information about the MBFC Grant Program and the application details for your organization.

Great News! SBA 504 Fee Reduction Announced for FY2018

Fee Reduction Announced for the
SBA 504 Loan Program!

On August 15, 2017, SBA issued SBA Information Notice 5000-1954 and has provided information on the fees for 504 Loans approved during FY2018.
These changes are applicable only to loans
approved on or after October 1, 2017.

Traditional 504 loans approved during FY2018
The upfront guaranty fee for 504 borrowers will continue to be zero in FY2018.

The annual service fee is reduced from 0.697% (69.7 basis points) to 0.642% (64.2 basis points) of the outstanding balance of the loan. This results in a reduction of 5.5 basis points!

504 Debt Refinance loans approved during FY2018
The upfront guaranty fee for 504 borrowers will continue to be zero in FY2018.

The annual service fee is reduced from 0.731% to 0.682%, a resulting reduction of 4.9 basis points!

This annual service fee reduction is figured into the overall effective SBA 504 interest rate for the borrower.

In comparison, the 20 year effective interest rate in September, 2017, on a traditional SBA 504 loan, was 4.38% fixed for the 20 year period. With the fee reduction, the 20 year effective rate would have been approximately 4.33%.

The September, 2017. the overall effective rate on the 504 Refinance Program was 4.42% fixed for the 20 year period. With the fee reduction, the overall effective rate would have been approximately 4.37%.

This is exciting news for our Small Business Owners!
Give your MBFC Business Development Officer a call today for more details.

The September 2017 overall effective rates are:
20 YEAR
Standard SBA 504 Loan at 4.38%
Refinance SBA 504 Loan at 4.42%

10 YEAR
Standard SBA 504 Loan at 4.15%
Refinance SBA 504 Loan at 4.20%
If you would like to access this TI Memo or the SBA Information Notice via the NADCO website, please click below.

TI Memo 27-17
SBA Information Notice 5000-1954

MBFC Presents a Grant to Itasca Economic Development Corporation

MBFC Presents a Grant to Itasca  Economic Development Corporation

On Thursday, August 10th, Minnesota Business Finance Corporation (MBFC) presented a grant contribution to Itasca Economic Development Corporation (IEDC). MBFC’s Terry Stein, Vice President of Business Development presented the check to Shannon Benolken, Director of Business Development-IEDC.

IEDC is located in Grand Rapids, Minn. and has a Small Business Development Center (SBDC) which serves more than 135 businesses and entrepreneurs. They offer customized assistance to start, expand, or maintain a business throughout the area. The IEDC spends approximately 80% of their resources on helping the local business community. They also work towards recruiting and attracting new businesses to the region. IEDC is a strong non-profit which adds value to Itasca County. For more information about IEDC and the SBDC office please follow a link to their website: Here

For more details about how your organization can apply for a MBFC Grant please contact your local MBFC Business Development Officer.

Grant Presented to the City of Maple Lake

Minnesota Business Finance Corporation (MBFC) awarded a $500.00 economic development grant to the City of Maple Lake. Lynn Kissock-Mayor of Maple Lake, Joe Kammermeier-VP Business Development of MBFC, and Lee Ann Yager-City Clerk of Maple Lake are pictured during presentation of the check.
The City of Maple Lake is conducting an economic development strategic plan to determine the direction of growth of the community. The planning commission will also evaluate businesses and developments that would be optimal for Maple Lake. This process will include reviewing how the city can better assist the current businesses. Jim Gromberg of WSB and Associates, and MBFC Member, helped connect Maple Lake with the grant program at MBFC.

Maple Lake is a community of approximately 2,185 people located in Wright County along Highway 55. This growing area is about 40 miles west of Minneapolis. For more information regarding business development in Maple Lake, please see their website at www.ci.maple-lake.mn.us.

For more information about MBFC’s Grant Program please contact your Business Development Officer.

MBFC Welcomes Mike Stearns, Vice President Business Development Officer

Mike Stearns, Vice President Business Development Officer,

MBFC Detroit Lakes Office

MBFC Welcomes Mike Stearns,
Vice President Business Development Officer!

MBFC is pleased to welcome Mike Stearns, Vice President Business Development Officer. Stearns joins MBFC with 20 years commercial lending experience, most recently with Midwest Bank in Detroit Lakes, MN where he was Vice President of Commercial Lending. MBFC has relocated their Northern Minnesota office from Bemidji to the Graystone Plaza building in Detroit Lakes.

Mike is active in many Detroit Lakes area committees and boards such as Detroit Lakes Breakfast Club Rotary.  He enjoys spending time with his family as well as running, traveling, and reading. Mike is a graduate of Augustana College in Sioux Falls, SD and has a BA in Business Administration and Economics.

His commercial lending, relationship management, and knowledge of the SBA 504 Program, are strong assets to MBFC. Mike is ready to roll up his sleeves and get to work with MBFC to help SBA 504 borrowers realize their small business dreams!

Give Mike a call today!


Mike Stearns, VP Business Development

Minnesota Business Finance Corporation
119 Graystone Plaza, Suite 200
Detroit Lakes, MN 56501

Cell: (218) 556-2898
Office:(218) 759-8481
Email: mstearns@mbfc.org