Skip to content
English - United States
Need More Help?
  • There are no suggestions because the search field is empty.

Microloan Available

TL;DR- Starting a small business project or adding something new? Check out our microloan.

The Discretionary Fund was established mid-2025 through council approval. The funds come from our secondary interest off our revolving loan funds.

We created the Microloan Program from these funds to help support business's small endeavors where typically lending isn't available. 

1. Contact the EDA about your project before you start to see what the best funding option are.

2. If encouraged, apply for the Microloan and await feedback from the EDA Loan Committee & Board of Directors.

Note: if using the funds to pay staff wages/salaries it must be at least $17/hr to adhere to the State's MIF rules. 

1. Program Purpose and Priorities

The City of East Grand Forks Micro Revolving Loan Program supports small businesses through low-interest, short-term financing ranging from $2,500 to $10,000. This program aims to create and retain jobs, increase property value, drive consumer activity to the region, expand the local tax base, and encourage new business investments.

2. Loan Terms

  • Loan Amount: $2,500 – $10,000
  • Term Length: 2 years
  • Interest Rate:
    • Standard: Low fixed interest rate (2.5% – 5.0%)
    • Zero-Interest Incentive: If repaid in full within 12 months of disbursement, the loan may qualify for 0% interest
  • Loan Fee: 2% of the loan amount, payable upon loan closing

3. Borrower Eligibility Requirements

  • Business must operate within the City of East Grand Forks, MN
  • Business owner must demonstrate creditworthiness and the ability to repay the loan
  • Optional: we encourage startups to have six-month operating history in a supportive environment (e.g., incubator, accelerator, business development program) however, this is not mandatory
  • If paying wages with these funds, the cash wage must be a minimum $17.00 per hour per the Minnesota Investment Funds compensation requirements.

4. Eligible Uses of Funds

  • Working capital
  • Equipment purchases
  • Leasehold improvements
  • Facade and beautification improvements
  • Inventory acquisition
  • Business expansion or relocation within East Grand Forks

5. Collateral and Guarantees

  • Collateral may include business equipment, inventory, or other business assets
  • A personal guarantee is required from all individuals with 20% or more ownership in the business
  • A UCC-1 lien may be filed against business equipment or assets as security for the loan
  • A primary lender is not a requirement to apply for this loan

6. Repayment and Default Terms

  • Monthly principal and interest payments begin within 30 days of disbursement
  • No penalties for early repayment
  • Default may lead to asset seizure, collections, and/or legal action

7. Access Limitations

A business may reapply for funding one year after fully repaying its previous loan.