Business Finance

Mission

The mission of the Headwaters Regional Finance Corporation (HRFC) is to be a catalyst for business and economic development in the Headwaters Region. The HRFC accomplishes its mission by providing “gap” financing to new and expanding businesses, and supporting and coordinating projects with private lenders and other economic development assistance providers.

HRDC Business Finance

Headwaters Regional Finance Corporation (HRFC) is a subsidiary of HRDC with the responsibilities of administering revolving loan funds for business development. The HRFC’s primary fund (EDA RLF) has been in existence since 1979. This fund was capitalized through a series of grants from the Federal Economic Development Administration (EDA) and currently operates with an asset base of $3.6 million. A nine-member board of directors oversees the HRFC while a loan committee reviews applications brought forth by staff.

Financing Focus

  • Support projects that will increase wealth and prosperity of employers, employees and communities through job creation and/or wage growth.
  • Encourage investment in state-of-the-art technology and innovative ideas.
  • Support projects that enhance ‘quality of place’ in our communities, which will help to
    retain and attract a quality workforce.

General Policies

  • A financing ‘gap’ must be identified.
  • Loans amounts from $10,000 – $350,000
  • All loans must be secured with collateral and personal guarantees.
  • Interest rates are typically below market rate.
  • Generally, borrowers will be required to show a 10% equity contribution.

Eligible Activities/Use of Funds

  • Purchases of equipment and other fixed assets
  • Working capital needs
  • Start-up expenses for new ventures
  • Purchase of real estate for business expansion
  • Product development expenses for existing businesses

HRFC/Business Loans

HRFC has a new Covid-19 Relief Loan Program! Loans are designed to provide critical financing to small businesses and entrepreneurs adversely affected by the coronavirus pandemic. Loans are available to qualified businesses in Headwaters’ five county region: Beltrami, Clearwater, Hubbard, Lake of the Woods, and Mahnomen. Interest rates start as low as 0% and staff will work with applicants to design flexible repayment terms. The application for the Covid-19 Relief Loan is the first one listed below.

To apply for RLF funding please contact:

Sarah Linda, Business Loan Specialist
Headwaters Regional Finance Corporation
slinda@hrdc.org
218-333-6536 or 218-214-2848
PO Box 906
Bemidji, MN 56619

Our Partners:

Existing Borrower Information

We are proud to serve you with your financing needs.

Here you will find documents that you will need to comply with the terms of your loan agreement. Please note, not everyone is required to complete these forms. Please refer to our request letters or your loan agreement to determine whether you need to complete the forms.

If you have any questions, please contact

Sarah_Linda

Sarah Linda

About HRFC-HRFC Board

Current Board

  • Cal Larson - Chair/Ex-officio member
  • Ron Johnson - Vice-Chair
  • Nick McArthur- Treasurer
  • Rick Rone - Secretary
  • Jason Funk
  • Kurt Knott
  • Nate Haskell
  • Kathy Grell
  • Tim Flathers - Executive Director - Non-Voting Member

HRFC Loan Committee

  • Jason Funk- Chair
  • Nick McArthur - Vice-Chair
  • Rick Rone- Ex-Officio Member
  • Kurt Knott
  • Nate Haskell
  • Tim Flathers - Executive Director - Non-Voting Member