Renewable Energy Loan Program
One of the key economic assets in southwest Minnesota is renewable energy. Developing this asset to its fullest potential is critical to the future of southwest Minnesota. The Renewable Energy Loan Program offers loans to businesses engaged in renewable energy activities, whether directly or indirectly, that help build the renewable energy industry in the 18 counties of southwest Minnesota.
Business ventures eligible for these loan funds may include energy production, secondary businesses that support the renewable energy industry, energy usage conversion projects, or new and emerging technologies. The program is administered by Prairieland Economic Development Corporation.
- Loan size must not exceed 25 percent of a project up to a maximum of $500,000, with the exception of energy conversion projects, which may qualify for 100 percent financing with bank participation in other aspects of the business.
- Loan funds may be used for up-front development costs, land, building or building improvements, machinery and equipment, inventory, or working capital.
- Interest rates will typically be at market rate, but will be determined by a measurement of risk and on a case-by-case basis.
- The loan term is based on the life of the asset and will match the term of other lenders on the project.
- Loans must have adequate collateral and may be subordinate only to the interest of the primary lender bank.
- Loan recipients will be charged a one percent loan origination fee plus all legal costs associated with the closing of the loan.
Applicants are encouraged to contact Prairieland EDC at an early stage in project development to discuss the feasibility of support for their projects. A loan officer will endeavor to provide an indication of the project’s eligibility and to suggest factors which should be considered to maximize the potential for developing a viable proposal.
For more information about the Southwest Initiative Foundation’s Renewable Energy Initiative, click here.
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