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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.

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Ready to Get Started?

Scott County

Carver County

Hennepin County

City of Minneapolis

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

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