Public Financing

The City of Northfield and the Northfield Economic Development Authority provide assistance to businesses through an array of grants and loan programs and can assist business in accessing numerous regional, state, and federal programs. If you would like to learn for which programs your business is eligible please fill out this pre-application and staff will get back to you shortly.

EDA Pre-application (pdf)

Loans and Grants
  • Downtown Revolving Loan (Small)

    Type: Loan
    Administrator: Northfield Economic Development Authority
    Eligible Uses: Exterior and interior improvements to building in Northfield’s C-1 or C-2 commercial zones.
    Amount Available: $0-$15,000
    Term: 5 years
    Rate: Half of the prime interest rate listed in the Wall Street Journal on day of loan approval.
    Private Financing Required: None

  • Master Development Fund Public Expenditures

    Type: Public Expenditure
    Administrator: City of Northfield
    Eligible Uses: Costs associated with infrastructure (i.e., streets, sewer, water) or public site improvements (i.e., parking lots, landscaping, sidewalks)

  • Clement F. Shearer Micro Grant

    Type: Grant
    Administrator: Northfield Economic Development Authority
    Eligible Uses: Development of technical, management, or marketing capabilities.
    Amount Available: $0-5,000
    Private Financing Required: None

  • Minnesota Community Capital Fund Loan

    Type: Loan
    Administrator: Minnesota Community Capital Fund
    Eligible Uses: Fixed assets, including land and building purchase, building construction, leasehold improvements and renovations; acquisition, renovation or moving machinery and equipment; and working capital loans secured by fixed assets with fixed repayment schedules (not lines of credit).
    Amount Available: $50,000 to $2,500,000
    Term: Up to 20 years.
    Rate: Specific to particular loan
    Private Financing Required: Project must involve a financial institution.

  • Job Opportunity Building Zones (JOBZ)

    Type: Tax Assistance
    Administrator: Minnesota Department of Employment and Economic Development
    Eligible Uses: Businesses which locate in one of Northfield’s JOBZ zones are exempt from corporate franchise tax; income tax for operators or investors, including capital gains tax; sales tax on goods and services used in the zone if the goods and services were purchased during the duration of the zone; property tax on commercial and industrial improvements but not on land; wind energy production tax, and; employment tax credit for high paying jobs.
    Private Financing Required: Varies

  • Tax Increment Financing

    Type: Tax Assistance
    Administrator: City of Northfield
    Eligible Uses: The extension of public utilities, site preparation costs, soil correction where determined to be necessary, and property acquisition for qualified industrial, manufacturing and warehouse businesses, expanding or locating in the community.
    Term: 8-25 years
    Private Financing Required: None

  • Southern Minnesota Initiative Foundation

    Type: Grant
    Administrator: Southern Minnesota Initiative Foundation
    Eligible Uses: Projects which engage elders in paid employment and/or volunteerism, capitalize on new immigrants in the workplace, engage young adults in experiential career education, support biomedical, bioagriculture, or renewable energy businesses, strengthen local entrepreneurs.
    Private Financing Required: None

  • Hire Education Loan Program

    Type: Loan
    Administrator: Minnesota Job Skills Partnership Board
    Eligible Uses: Businesses must contract with outside accredited public or private training institutions for needed worker training. Loan eligibility is determined according to training needs, availability of other funding sources, economic viability of the firm, and quality of the jobs for which training is provided. Priority is given to loans that provide training for jobs that are permanent, provide health care coverage and other fringe benefits, and have a career or job path with prospects for wage increases.
    Min/Max Amount Available: Up to $250,000
    Min/Max Term: Up to 5 years
    Min/Max Rate: 0%
    Private Financing Required: None

  • Job Skills Partnership Program

    Type: Grant
    Administrator: Minnesota Job Skills Partnership Board
    Eligible Uses: Funds may be used for training-related costs or educational infrastructure improvements necessary to support businesses located or intending to locate in Minnesota. All training projects pair at least one public/private accredited Minnesota educational institution and one business.
    Amount Available: Up to $400,000
    Term: 1-3 years
    Private Financing Required: 50% of project costs

  • Small Business Development Loan Program

    Type: Loan
    Administrator: Minnesota Agricultural and Economic Development Board
    Eligible Uses: Acquisition of land, building, machinery and equipment; building construction and renovations; development costs such as engineering, legal and financial fees for manufacturing and industrial businesses located or intending to locate in Minnesota.
    Amount Available: Up to $5,000,000
    Term: Up to 20 years
    Rate: Market rate of interest for similar securities at the time bonds are sold; rates are fixed for the term of the loan
    Private Financing Required: 20 % of the project costs must be privately financed through equity or other sources

  • Minnesota Indian Business Loan

    Type: Loan
    Administrator: Minnesota Department of Employment and Economic Development
    Eligible Uses: Eligible projects include start-up and expansion costs, including normal expenses such as machinery and equipment, inventory and receivables, working capital, new construction, renovation, and site acquisition. Eligible applicants must be enrolled members of a federally recognized Minnesota-based band or tribe.
    Amount Available: 75 percent of the cost of the project that is being financed
    Term: Up to 20 years
    Rate: Established by the tribal government or the Department of Employment and Economic Development, but may be no less than 2 % per annum nor more than 10 % per annum.
    Private Financing Required: 5-10% of project costs

  • Small Business Loan Program (7a)

    Type: Loan
    Administrator: United States Small Business Administration
    Eligible Uses: To purchase land or buildings, to cover new construction as well as expansion or conversion of existing facilities, to acquire equipment, machinery, furniture, fixtures, supplies, or materials, for long term working capital including the payment of accounts payable and/or for the purchase of inventory, to refinance existing business indebtedness which is not already structured with reasonable terms and conditions, for short term working capital needs including: seasonal financing, contract performance, construction financing, export production, and for financing against existing inventory and receivable under special conditions; or to purchase an existing business.
    Amount Available: Up to $2,000,000
    Term: 7-25 years
    Min/Max Rate: Prime + 2.25% to Prime + 4.75%
    Private Financing Required: Varies

  • Certified Development Company Loan Program (504)

    Type: Loan
    Administrator: United States Small Business Administration
    Eligible Uses: Fixed asset projects such as: purchasing land and improvements, including existing buildings, grading, street improvements, utilities, parking lots and landscaping; construction of new facilities, or modernizing, renovating or converting existing facilities; or purchasing long-term machinery and equipment.
    Amount Available: Up to $4,000,000
    Term: 10 or 20 years
    Rate: Pegged to an increment above the current market rate for five-year and 10-year U.S. Treasury issues.
    Private Financing Required: Typically a 504 project includes a loan secured from a private-sector lender with a senior lien, a loan secured from a CDC (funded by a 100 percent SBA-guaranteed debenture) with a junior lien covering up to 40 percent of the total cost, and a contribution of at least 10 percent equity from the borrower.

  • Microloan Program (7m)

    Type: Loan
    Administrator: United States Small Business Administration
    Eligible Uses: Working capital and acquisition of materials, supplies, furniture, fixtures, and equipment for small businesses and not-for-profit child-care centers.
    Amount Available: Up to $35,000
    Min/Max Term: Up to 6 years
    Min/Max Rate: Approximately 1.25% less than the interest rate on five-year obligations of the United States Treasury.
    Private Financing Required: Varies

  • Economic Injury Disaster Loans

    Type: Loan
    Administrator: United States Small Business Administration
    Eligible Uses: Ordinary and necessary operating expenses of small businesses and small agricultural cooperatives that have suffered substantial economic injury resulting from a physical disaster or an agricultural production disaster designated by the Secretary of Agriculture.
    Amount Available: Up to $1,500,000
    Term: Up to 30 years
    Rate: Not above 4%
    Private Financing Required: None

  • Physical Disaster Loans

    Type: Loan
    Administrator: United States Small Business Administration
    Eligible Uses: Repair or replacement of physical property damaged in a physical disaster.
    Amount Available: Up to $1,500,000
    Term: Up to 30 years
    Rate: 4-8%
    Private Financing Required: None

  • Military Reservist Economic Injury Disaster Loan

    Type: Loan
    Administrator: United States Small Business Administration
    Eligible Uses: The meeting of ordinary and necessary operating expenses that the business could have met, but is unable to meet, because an essential employee was "called-up" to active duty in their role as a military reservist.
    Amount Available: Up to $1,500,000
    Term: Up to 30 years
    Rate: Not above 4%
    Private Financing Required: None

  • Business and Industry Guaranteed Loans

    Type: Loan
    Administrator: United States Department of Agriculture
    Eligible Uses: Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities, business conversion, enlargement, repair, modernization, or development, purchase and development of land, easements, rights-of-way, buildings, or facilities, purchase of equipment, leasehold improvements, machinery, supplies, or inventory.
    Amount Available: Up to $10,000,000 (The Secretary of the Department of Agriculture can approve loans up to $40,000,000)
    Term: 7,15, or 30 years depending on the use of funds
    Rate: Will be negotiated between the Department of Agriculture and the individual applicant.
    Private Financing Required: None

  • Renewable Energy and Energy Efficiency Program (Se

    Type: Grant
    Administrator: United States Department of Agriculture
    Eligible Uses: Purchase and installation of renewable energy systems and energy efficiency improvements by agricultural producers and rural small businesses.
    Amount Available: $1,500 to $500,000
    Private Financing Required: 75% of total eligible project costs

  • Biomass Research and Development Initiative

    Type: Grant
    Administrator: United States Departments of Agriculture and Energy
    Eligible Uses: Research and development of biomass based products, bioenergy, biofuels and related processes.
    Amount Available: Up to $1,000,000
    Private Financing Required: None

  • Downtown Revolving Loan (Large)

    Type: Loan
    Administrator: Northfield Economic Development Authority
    Eligible Uses: Exterior and interior improvements to building in Northfield’s C-1 or C-2 commercial zones.
    Amount Available: $15,001- $75,000
    Term: $15,001-$30,000: 10 years, $30,001-$75,000: 15 years
    Rate: The prime interest rate listed in the Wall Street Journal on day of loan approval.
    Private Financing Required: 20 % of project costs

  • Master Development Fund Loan

    Type: Loan
    Administrator: City of Northfield
    Eligible Uses: Property acquisition, infrastructure, public infrastructure, site improvements, and building construction on property.
    Amount Available: Industrial Projects: $10,000-$150,000, Commercial Projects: $10,000-$50,000.
    Term: Industrial Projects: 10-20 years depending on amount, Commercial Projects: 7-15 years depending on amount.
    Rate: 80 percent of the average local lender commercial rate. Private Financing Required: 70% of the total project cost, which includes the property, building, construction and site improvements (excluding soft costs and equipment).


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