MBFC Awarded #1 CDC in Minnesota!

MBFC Awarded #1 CDC in Minnesota!

(Pictured: Nadene Kruize, SR VP-MBFC, Nancy Libersky, Director-MN SBA District Office, and Tom Saehr, President & CEO-MBFC.)

Thursday, September 7, 2017 Minnesota Business Finance Corporation (MBFC) was recognized as the Top Certified Development Company (CDC) in Minnesota based on loan volume in SBA 504 loans at the 5th Annual Minnesota SBA Lenders Conference.

Nancy Libersky, District Director of the MN SBA District Office congratulated MBFC and presented Tom Saehr, President & CEO and Nadene Kruize, Senior Vice President with the award honoring MBFC’s 2017 accomplishments.

This is the third consecutive year MBFC has received an award from the MN SBA District Office. MBFC is consistently ranked in the Top 20 of the 260+ CDC’s in the Nation and is honored to receive this prestigious award.

(Pictured: Michelle Mueller-MBFC, Joe Kammermeier-MBFC, Gordy Winzenburg-CMG Finance and MBFC Board Member, Tom Saehr-MBFC, Carol Anderson-Morrison County Community Development and MBFC Board Member, and Nadene Kruize-MBFC.)

Thank you to our Lending Partners and Small Business Borrowers for helping to make
MBFC the #1 CDC in Minnesota!

*Photo provided by Sarah Swenty/SBA

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University of Minnesota Duluth Center for Economic Development Awarded a Grant from MBFC!

Wednesday, September 13, 2017, Minnesota Business Finance Corporation (MBFC) awarded an economic development grant to the University of Minnesota Duluth Center for Economic Development (UMDCED). Elaine Hansen, Director-UMDCED and Regional Director, NE & NW Small Business Development Center accepted the check from Terry Stein, VP-Business Development of MBFC at Hansen’s office in Duluth.

(Pictured: Elaine Hansen, Director of UMD-Center for Economic Development with
Terry Stein, VP Business Development for MBFC)

The CED requested support for their Student to Business Initiative program which develops entrepreneurial skills in real world experience with business owners. This also assists business owners gain new insight in what the student are learning about organizational management, consumer behavior, marketing, and accounting issues which in turn the students are able to see first-hand in real business situations. Funding this program allows UMD to continue to thrive with students involved in local businesses and covers expenses allowing the business owners to partake with minimal cost.

MBFC is the only certified development company in Minnesota to office out of the UMDCED during a part of each month. Stein is available on the first Wednesday of the month in Duluth, in addition to the surrounding areas, for appointments. We encourage and welcome you to take advantage of working with MBFC at this location for all your SBA 504 fixed asset financing needs.

Contact Information:
University of Minnesota-Duluth CED
Duluth Technology Village
11 East Superior Street, Suite 210
Duluth, MN 55802
(218) 726-7298

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Beds Plus, of Park Rapids, Awarded MBFC’s VetLoan Advantage Rebate

Minnesota Business Finance Corporation (MBFC) is honored to present Kasey and Crystal Krautkremer our VetLoan Advantage Rebate of $3,000. This Rebate is part of the Strategic Initiative of the National Association of Development Company’s (NADCO) VetLoan Advantage program. MBFC is the only Certified Development Company in Minnesota to offer a rebate to business owners that are active or retired members of Military Service.

(Pictured: Kasey and Crystal Krautkremer of Beds Plus (along with their children, Kaitlyn and Caleb);
and Mike Stearns, VP Business Development Officer at MBFC.)

Beds Plus is a full-service mattress and furniture store located in Park Rapids, MN. In addition to carrying Sealy and Restonic mattresses, they also carry Vaughan-Bassett and Lang bedroom furniture. For the remainder of the home, they carry Ashley Furniture and Best Home Furnishings.

Kasey Krautkremer, and his wife Crystal, are the co-owners of Beds Plus. Kasey’s military service includes six years with the Air Force, at Whiteman Air Force Base in Missouri, where he was a firefighter. During that time, he did spend four months at Al Udeid Air Base, which is located southwest of Doha, Qatar. Since his honorable discharge, Kasey has continued as a volunteer firefighter for the Park Rapids Fire Department.

For more information about Beds Plus, please visit their website at: www.prbedsplus.com

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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