SOUTHWEST MINNESOTA FOUNDATION

The Southwest Minnesota Foundation (SWMF) is a philanthropic corporation serving eighteen counties in southwestern Minnesota, including Lyon County. Funds are distributed throughout the region in the form of grants and loans for human services, economic and business development, education, leadership development and health and human services.

The SWMIF will consider financial support of start up or expanding businesses that will create employment by generating new wealth and diversifying the ecomony of Southwestern Minnesota.

The Business Finance Program provides "gap financing" to eligible businesses. This financing supplements the dollars provided by financial institutions and investors and strengthens financial packages. The Initiative Fund also coordinates the State of Minnesota's Challenge Grant Program, providing loans to businesses and promoting economic development in rural Minnesota. The SWMIF has received over $1,000,000 in Challenge Grant monies from the State of Minnesota.

The Initiative Fund is officed out of Hutchinson and has an economic development loan program which provides up to $100,000 over negotiated time period and interest rates. Loans in many cases can be amortized over a period of time with a balloon payment.

Use of the program is designed to encourage job creation in southwestern Minnesota. The project must meet certain minimum and not exceed certain maximum size standards. The application process is two-part, which requires both a preliminary, concept approval and a final credit approval before the Southwest Minnesota Initiative Fund Board. The application process requires approximately 60-90 days to complete