The U.S. Small Business Administration has announced that North Shore Federal Credit Union (Silver Bay, Lutsen and Grand Marais) has been approved as an SBA lender. Dale Klobuchar of the Grand Marais branch of the credit union is pleased to have another tool to assist customers.
Mel Boser, lender relations specialist of Minnesota’s SBA district office, said, “We are delighted to welcome North Shore Federal Credit Union to the growing list of small business lenders in Minnesota who have become SBA lenders. They will now be able to provide SBA guaranteed loans to area small businesses.”
Klobuchar said the SBA program can help individuals wanting to start a new business without a lot of money for a down payment. “The program gives small businesses another avenue for funding for start-ups,” said Klobuchar.
Klobuchar said the SBA lender approval also means the credit union can help businesses apply for American Recovery Capital (ARC) loans. ARC is intended to help businesses struggling in the current economic downturn. “If a small business is having difficulty, we can look at their situation and see what we can do to help them out,” said Klobuchar.
SBA’s 7(a) Loan Guaranty program provides funds to existing businesses and start-ups for almost any legitimate business purpose including the purchase of land and buildings, construction, machinery and equipment, inventory and working capital. Participating lenders loan their funds but the SBA guarantees a portion of that loan. The interest rates are negotiated, but SBA does establish ceilings. Loan maturities vary depending on use of the funds.
For more information visit www.sba.gov/financing or call Dale Klobuchar in Grand Marais at (218) 387-1312 or Joe Stasney in Silver Bay at (218) 226-4401.
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