Which nonprofit lenders in Minnesota currently administer Emerging Entrepreneur Loan Program (ELP) funds and what are their application requirements?
Executive summary
The Minnesota Department of Employment and Economic Development (DEED) provides Emerging Entrepreneur Loan Program (ELP) funds to a network of certified nonprofit lenders across the state; businesses apply directly to those certified lenders and lenders forward approved loan packages to DEED for final commissioner approval and disbursement [1]. Publicly identified ELP lenders in the provided reporting include Southern Minnesota Initiative Foundation (SMIF), Rochester Area Economic Development, Inc. (RAEDI), NextStage, and Midwest Minnesota Community Development Corporation, each with slightly different service areas, loan sizes, and application contact points [2] [3] [4] [5].
1. Which organizations currently administer ELP funds — a quick roster and caveat
DEED funds are distributed through a network of certified nonprofit lenders rather than directly to businesses, and the reporting explicitly names several participating organizations: Southern Minnesota Initiative Foundation (SMIF) is a certified ELP lender and provides a direct contact for applications (Marcia Haley) [2]; Rochester Area Economic Development, Inc. (RAEDI) administers ELP for southeast Minnesota and evaluates loans through its finance committee and board [3]; NextStage is listed as a participating lender in the EELP with typical loan sizes noted on its lending page [4]; and the 2024 EELP annual report identifies Midwest Minnesota Community Development Corp. among lender activity [5]. This list is drawn only from the supplied sources; DEED also maintains an interactive directory of certified lenders for the full, current roster [1], and the available reporting does not claim to be an exhaustive, up-to-the-minute list of every certified nonprofit lender [1].
2. Who is eligible — the program’s core borrower requirements
Across DEED materials and participating-lender pages, ELP loans target businesses that are majority-owned and operated by people from historically underserved groups — minorities, low-income persons, women, veterans and/or persons with disabilities — and the business must operate in Minnesota [1] [6]. Lenders may apply additional local criteria to ensure equitable distribution across Greater Minnesota or particular regions, so eligibility can depend both on the statewide ELP rules and lender-specific restrictions [1] [5].
3. Typical loan sizes, rates, fees and how terms are set
DEED-funded nonprofit lenders make loans ranging generally from about $5,000 up to $150,000 under the ELP framework [6]. NextStage’s materials indicate typical loan sizes in its practice between roughly $50,000–$100,000 and describe fixed-rate pricing that often runs a few percentage points above prime for start-ups, reflecting lender discretion within program parameters [4]. The 2024 annual report explains that lenders may charge an origination fee not to exceed one percent of loan value and references a cap on interest tied to the prime rate plus two percent subject to a 10 percent maximum, showing program-level guardrails while leaving specifics to participating lenders [5].
4. Application process — how to apply and what happens after lender approval
Business owners must apply directly with a certified ELP lender rather than through DEED; DEED’s site and partner pages repeatedly emphasize direct lender application and offer tools and contacts to find an appropriate lender [1] [2]. Once a lender approves a loan, the lender forwards the loan package to DEED for final approval by the commissioner and disbursement of funds — meaning initial underwriting, documentation, and borrower interaction are primarily handled by the nonprofit lender [1]. SMIF provides a named contact for applications (Marcia Haley) [2], while RAEDI explains local procedural governance (finance committee and board recommendation) for southeast Minnesota applicants [3].
5. Practical implications and the gaps in public reporting
The available reporting makes clear that ELP is a decentralized program run through local nonprofit lenders with differing geographic coverage, loan ceilings, and underwriting practices [1] [5], but the supplied sources do not include a complete, current roster of every certified lender or a single standardized application checklist — DEED’s interactive directory is cited as the place to find a full list and local contacts [1]. For precise paperwork requirements, collateral expectations, and current interest rates borrowers must consult the specific lender (SMIF, RAEDI, NextStage, Midwest MN CDC or other certified lenders) or DEED’s directory, because lenders set many of the operational terms within DEED’s program rules [2] [3] [4] [5].