The Northland Foundation announced more than $2 million in new loan capital available to northeastern Minnesota businesses.
The Northland Foundation loan program has been a certified Community Development Financial Institution (CDFI) for more than 20 years. It is one of approximately 1,200 such entities scattered across all 50 states, the District of Columbia, and U.S. territories of Guam and Puerto Rico. As a CDFI, the foundation has successfully applied for upwards of $10 million for lending in its Northern Minnesota service area.
Last month, Northland received news from the U.S. Department of the Treasury CDFI Fund: a new infusion $1.86 million in loan capital through the Rapid Response Program (RRP). The RRP funding awards, announced in June, are a response to economic challenges created by the COVID-19 pandemic.
“These awards provide CDFIs with an unprecedented level of flexible capital to help distressed and underserved communities across the country take meaningful steps towards recovering from the debilitating economic impacts of the COVID-19 pandemic,” said CDFI Fund Director Jodie Harris.
The Northland Foundation is one of 26 nonprofit lenders across the state selected to receive new loan capital through DEED’s Minnesota Emerging Entrepreneur Loan Program. The award of $150,000 is part of $3.1 million being awarded statewide to support the growth of businesses owned and operated by people who identify as Black, Indigenous, and People of Color (BIPOC); low-income persons; women; veterans and/or persons with disabilities.
The program helps ensure that business owners from populations who have historically faced barriers to accessing capital are able to get funds to start and grow their business. The Emerging Entrepreneur Loan Program awards can be used by eligible businesses to finance a variety of start-up and expansion costs. Find more information about the ELP here.