EDA Loans

The EDA administers revolving loan funds which are intended to encourage, facilitate, and stimulate economic development projects within the City of Pine Island. There are multiple loan funds and programs which originated from either local, state, and federal programs. Each have different requirements for eligibility. The chart provides a summary of the EDA’s loan programs:

Microenterprise Development Loan Program
Pine Island City-Wide Development Loan Program
Pine Island Telephone Company Revolving Loan Program
Façade Improvement Loan Program

Generally, funds loaned through the EDA are provided as “gap financing”, where conventional bank financing and owner equity are not able to provide all the funding needed. This typically occurs when the bank has lending limits they must adhere to, the owner(s) do not have adequate equity, the collateral is insufficient, or the business cannot afford market interest rates and/or term requirements.

EDA funds are intended to supplement private financing and assist, not compete with private lending agencies, in order that worthwhile business projects can be executed in Pine Island.

Click here for a loan application

For additional information please email eda@ci.pineisland.mn.us

EDA Loan Fund Guidelines
Guidelines	PI City-Wide Development Loan	Microenterprise Development Loan	Pine Island Telephone Company Loan	Façade Improvement Loan Program
Loan Minimum	$5,000	$1,000	$10,000	$500
Loan Maximum	up to 90% of available funds	$25,000	up to 100% of available funds	$2,500
Purpose	Gap Financing	Gap Financing	Gap Financing	Improvement of façade in specified areas within the City of Pine Island
Terms	Up to 5 years on loans of $10,000 or less Up to 10 years on loans of more than $10,000	Up to 5 years on loans of $10,000 or less Up to 10 years on loans of more than $10,000	Not to exceed 10 years	5 year forgivable loan
Eligible Uses of Loan Proceeds	Purchase of land and/or purchase or renovation of buildings, machinery or purchase of equipment or professional services or working capital	Purchase of land and/or purchase or renovation of buildings, machinery or purchase of equipment or professional services or working capital	Purchase of land and/or purchase or renovation of buildings, machinery or purchase of equipment or professional services or working capital	Improvements to the exterior of the building including but not limited to windows, doors, paint, tuckpointing
Interest rate (fixed rate)	2 points below the 10-year commercial rate of local financial institution w/minimum of 4%	2 points above Prime Rate	1% to Prime Rate
Origination Fee	1.5% of loan amount	1.5% of loan amount
Security & guarantees	Liens against property or equipment, personal guarantees+	Liens against property or equipment, personal guarantees+	Liens against property or equipment, personal guarantees+