Koochco Loan Program

Flexible Gap Financing for Koochiching County Businesses

The Koochco Loan Program is a private, non-profit gap financing initiative dedicated to fostering permanent employment and economic stability. Managed by the Koochiching Economic Development Authority (KEDA), Koochco provides the critical “bridge” funding necessary to launch new ventures or expand existing operations within Koochiching County.

To be eligible, your business must be located within the county and demonstrate a clear potential for job creation or retention.

Eligible Industries & Projects

Koochco supports a diverse range of sectors that drive the regional economy. Special consideration is given to locally started businesses and projects demonstrating significant growth potential.

• Manufacturing & Industrial: Heavy and light industrial operations.
• Tourism & Resorts: Projects that attract visitors and expenditures from outside the region.
• Technology & Testing: Service sectors, office-based businesses, and cold-weather testing facilities.
• Agriculture & Wood Products: Supporting the backbone of the North Country’s natural resource economy.
• Retail: Evaluated on a case-by-case basis based on community impact.

Program Requirements & Terms

The Koochco Loan Program is designed to work in partnership with private lending institutions to complete your project’s capital needs.

• Funding Limit: Koochco provides up to 50% of the project financing, with a maximum loan amount of $40,000.
• Interest Rates: Rates are typically set at 1% less than current bank rates, following the structure of your primary lender.
• Loan Terms: Term loans with a maximum amortization of 20 years. Most loans include a balloon payment or call provision after the fifth year.
• Collateral: Personal guarantees and sufficient collateral coverage (satisfying both the bank and Koochco) are required.

Use of Funds

Loan proceeds can be applied to a wide variety of essential business expenses:

• Real Estate: Land/building acquisition and new construction or renovations.
• Equipment: Purchase of machinery, specialized tools, and industrial equipment.
• Operations: Inventory purchases and working capital (non-revolving).
• Professional Fees: Accounting, legal, architectural, and appraisal fees related to the project.

How to Apply

Koochco follows a streamlined, three-step application process to get your project moving quickly.

1. Preliminary Review: Meet with a local banker or KEDA staff to confirm your project meets the program guidelines.
2. Submission: Submit a completed application along with a comprehensive Business Plan.
3. Board Approval: The Koochco Board of Directors reviews the submission and notifies the applicant of the final decision.

Download the Koochco Loan Application (PDF)