
Lending
Direct Lending
NextStage offers direct financing to entrepreneurs and small businesses in our service communities to meet a variety of borrowing needs. This includes financing for:
-
Equipment
-
Buildout/leasehold improvements
-
Inventory
-
Receivable and cash cycle management
-
Working capital and start-up costs
The typical loan size is between $1,000-$50,000. Loan approval is subject to underwriting. As a nonprofit lender, NextStage employs a review process that strongly weights an entrepreneur’s creativity, commitment and growth, with reduced dependence on traditional credit standards of collateral, equity contribution and credit score.
Loan terms are structured to match the financing use; a typical term is 3-5 years.
Loan rates are typically fixed at 4% above the WSJ Prime Rate for start-up/newer ventures and may be lower for established borrowers.
Participation Lending
NextStage staff excel at demystifying the financing process, and helping entrepreneurs translate their vision and industry experience into clear projections and a comprehensive financial presentation that invites lenders to evaluate the business rather than base credit decisions primarily or exclusively on the entrepreneur’s personal financial strength.
For established businesses with larger borrowing needs, NextStage can use its financing tools to attract and leverage significant private financing by taking a subordinate financing position to cover a collateral or appraisal shortfall, or to shore up a borrower’s equity contributions. In our experience, a subordinated loan of even 10-20% of a total project can make all the difference between approval and denial for an entrepreneur who lacks the equity and/or collateral to fully access private financing on their own.
The typical loan size is between $50,000-$100,000. Rates are typically fixed, between 2-4% above the WSJ Prime Rate for a term of up to 7 years based on borrowing needs.
Partnership Lending
Emerging Entrepreneur Loan Program
NextStage is a participating lender in the State of Minnesota’s Emerging Entrepreneur Loan Program (EELP), a program geared to supporting start-up and early-stage entrepreneurs from historically disadvantaged communities.
Scott County Business Revolving Loan Fund
​
On behalf of the Scott County Community Development Agency (CDA), NextStage is acting as the administrator of the Scott County Business Revolving Loan Fund, an initiative to support commercial property acquisition, redevelopment and improvement in Scott County. Qualified projects can access up to $150,000 to support the following uses:
-
Land and building acquisition
-
Land improvements
-
New building construction
-
Building renovation
-
Machinery, equipment and fixtures – the remaining effective life must be equal to or exceed the life of the loan
-
Repairs
CDA Revolving Loan Funds are available to qualified borrowers at a fixed 5% rate, for a term of up to 10 years (longer amortization periods possible with a balloon). Revolving Loan Funds require a private/non-governmental match. Contact NextStage Scott County for more details.
Programs for Hennepin County Businesses
Elevate Hennepin Small Business Small Business Fund
Elevate Hennepin has provided NextStage with $1.1 million of dedicated Loan Capital to supplement its lending capacity and enhance services to new and growing small business ventures in Hennepin County. These funds will be deployed as Direct loans to borrowers unable to access business financing from traditional capital markets, and in Participation with banks and other community lenders to leverage private capital (see Direct Lending and Participation Lending above for terms).
Elevate Hennepin Commercial Property Ownership Loan Fund
On behalf of Hennepin County Housing and Economic Development (HC HED), NextStage is acting as the administrator of the Hennepin County Commercial Property Ownership Loan Fund, an initiative to increase commercial property ownership opportunities among smaller scale, and historically disadvantaged entrepreneurs challenged to meet the equity requirements for traditional financing programs. Commercial ownership can provide a significant opportunity for entrepreneurs to meet the operating and growth needs of their small business venture, while fixing overhead costs and building transferable assets/equity value over time.
​
​The Commercial Property Ownership Loan Fund pairs two distinct loan products designed to address equity-related barriers to commercial property ownership for owner-occupant applicants and borrowers.
​
​



Ready to Get Started?
Our nonprofit services are available free, without pre-qualification, to residents of and businesses located in: