At Minnesota Business Finance, it’s business as usual – we’re hard at work for our customers getting applications approved at our loan committee level and ready for SBA submission just as soon as SBA reopens.
In the meantime, if lead lenders are needing to close on a project and don’t have SBA 504 approval there are things that can be done:
- A lead lender is allowed to close ahead of SBA 504 approval at their own risk as long as they put in place short-term interim financing.
- If a lead lender is wanting to alleviate added risk, the lender can take additional down payment or collateral during the interim financing phase and then release upon SBA 504 pay down.
With these practices, it allows the projects to close but leaves the door open to obtain the long term fixed rate financing that the borrower desires!
MBFC’s SBA 504 Interest Rate Link HERE
We are on track for SBA 504 loans that were closed in December in which the SBA funding occurs February 13th as long as there weren’t any pending changes on the loan that weren’t approved by SBA prior to the Government shutdown.
MBFC is moving forward closing loans in January in which the SBA funding is scheduled for March 13th, however it is unknown at this time if funding will stay on track for March 13th. More will be learned in the coming weeks.
If you have any further questions on this topic,
your MBFC Loan Officer would be happy to help!
Have You Heard About SBA’s 504 Rural Initiative Pilot Program?
As of July 18, 2018, SBA launched the 504 Loan Program Rural Initiative. This allows CDC’s to make loans outside of their SBA approved area of operations. The pilot program will be available until July 20, 2020. Any 504 project with an address located in any county classified as “rural” by the U.S. Census Bureau qualifies as long as the 504 project is located within the SBA Region that the CDC is incorporated. MBFC is part of Region 5 which includes: Minnesota, Wisconsin, Illinois, Indiana, Michigan, and Ohio.
As an example, here is a glimpse of the counties in Wisconsin that now qualify to have MBFC help you with a SBA 504 loan through this Rural Initiative! The 10 Wisconsin counties in GOLD are MBFC’s Local Economic Areas in which we already do business. The light BLUE colored counties are new areas in which MBFC can now very easily operate!
For More information about the 504 Loan Program Rural Initiative give your MBFC Loan Officer a call.
(Pictured: Joe Kammermeier, Vice President of Business Development of MBFC with Nicole Fernholz, Executive Director of AAEDC)
Grant Presented to Alexandria Area EDC
Minnesota Business Finance Corporation (MBFC) recently gave an economic development grant to Alexandria Area Economic Development Commission (AAEDC). MBFC Business Development Officer, Joe Kammermeier, presented the check to Nicole Fernholz, AAEDC Executive Director.
The AAEDC requested a MBFC grant to assist with the marketing costs for a business challenge called: “Pitch Your Plan”. Pitch Your Plan is an Alexandria Area Business Competition for any for-profit business looking to open, relocate, or expand their business to present their idea to the AAEDC to WIN a community prize package.
There are 3 Phases to “Pitch Your Plan”. Application, Analysis/Planning, and Presentation. During phase 3 the selected entrants will share their idea to the judges in business presentation styled after NBC’s Shark Tank television show. A winner will be chosen and awarded the prize package on Tuesday, May 7th, 2019 at a business luncheon hosted by AAEDC.
For more information on how to apply for the promotional business development program, or to visit the AAEDC website for additional information, please click here:
MBFC is encouraged to support economic development plans to grow entrepreneurial resources in Minnesota and surrounding areas. If your organization has an event, project, or Veteran Owned Business please contact MBFC for details how to apply for our different incentive, grant, or rebate programs.
Partner Buyout Stock Purchase – SBA 504 ELIGIBLE!
Didn’t think a partner buyout stock purchase was SBA 504 eligible?
It certainly can be!
MBFC just processed a $5 Million Dollar Partner Buyout Stock Purchase that was approved by SBA in 4 business days AND the SBA 504 loan closed within 2 weeks of SBA approval!
Now that’s customer service.
Give us a call today to find out more about MBFC’s quick turn capabilities.
(Pictured: Kim Erickson, American National Bank of Minnesota, Jason Johnson and Shannon Martinson both of Abrasive Blast Supply, Inc. receiving a check from Joe Kammermeier, Vice President of MBFC.)
Abrasive Blast Supply, Inc. Receives MBFC’s VetLoan Advantage Rebate
Minnesota Business Finance Corporation (MBFC) is honored to present Abrasive Blast Supply , Inc. our VetLoan Advantage Rebate of $3,000. 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. MBFC’s VetLoan Advantage Rebate is part of a strategic initiative of the National Association of Development Companies (NADCO) VetLoan Advantage program.
Abrasive Blast Supply provides sandblasting supplies to businesses and individuals. They also sell and rent all the equipment for portable blast trailers and provide grade D breathable air systems. Johnson and Martinson purchased land and constructed a warehouse and office building in Little Falls, MN.
They utilized financing at American National Bank of Minnesota with lender Kim Erickson and a SBA 504 loan through Kammermeier at MBFC. Tax Increment Financing (TIF) funds were used in part by the borrower from the City of Little Falls during site improvements, parking, and footings/foundation work. For more information about Abrasive Blast Supply, Inc. please click here for a link to their website!
Martinson joined the United States Army in 1988. He attended basic training at Fort Knox, Kentucky. He first served in Amberg, Germany and was positioned on the Czech/Germany border at the end of the Cold War. He then served in Saudi Arabia as Operation Dessert Storm was just beginning. He maintained and drove tanks for nighttime security. He quotes being “the tip of the spear, for the US Army’s 7th Corp” during this time. He was promoted to gunner on the tank and remained there until 1992.
After returning, he was assigned 3/70 Armor, 5th Infantry Division in Fort Polk, Louisiana. This included 2 state-side trainings at Fort Irwin, CA and Fort Hood, TX. Martinson was promoted to Sergeant (E-5). Following his first 4 year enlistment he reenlisted, with the Montana National Guard. He was assigned to the 163rd Cavalry in Helena, MT where he maintained tanks and also fought wild fires twice.
MBFC thanks Shannon for his military service. For more information about MBFC’s VetLoan Advantage Rebate, or details on how to apply, please contact your local MBFC Business Development Officer today!