Announcing the launch of the Cloquet Business Assistance Fund

The City of Cloquet Economic Development Authority (Cloquet EDA) and Entrepreneur Fund are pleased to announce they are accepting loan applications for the recently formed Cloquet EDA Small Business Assistance Loan.  The program was developed by the Cloquet EDA who has contracted with the Entrepreneur Fund to review, process, and close the loan applications for qualifying small businesses located within the city limits of Cloquet and within commercial /office/industrial buildings in response to challenges from the COVID-19 pandemic.

“Small businesses need our support now more than ever. The Entrepreneur Fund is poised to help Cloquet businesses by making the process as seamless as possible and leveraging additional programs that these businesses may be eligible for,” said Shawn Wellnitz, Entrepreneur Fund CEO.

The purpose of this fund is to prevent permanent closure of City of Cloquet for-profit businesses during and after the COVID19 pandemic and restore affected businesses back to financial health as quickly as possible.  

For more details on how to start the process please visit the Cloquet Business Assistance Loan page.

Terms

• Up to $20,000 working capital/inventory loan
• Initial 6-month deferral of principal and interest payments
• 5-year term
• 2% interest rate

Eligibility 

• For-profit, locally owned business located within the municipal city limits of Cloquet and located within commercial, office or industrial property. Applicants must provide proof of address of owned business and/or lease.
• Business affected by the COVID-19 virus (all businesses; not only those included in the executive orders, however priority will be targeted to those included in EO 20-04 and 20-08). Applicants must demonstrate they have applied for federal and state leverage programs such as SBA programs EIDL Loan/Grant or PPP (federal) and state (DEED) resources in order to leverage this local program.
• Loan fund use is for working capital and inventory and cannot be used for business owner’s/manager’s personal uses or expenses. Applicants must demonstrate the ability to collateralize this loan. Applicants must provide proof of need including but is not limited to the previous year’s annual gross revenue, average monthly gross revenue prior to COVID-19.
• Applicants must demonstrate they are current on financial obligations as of March 1, 2020 (which includes property taxes and city utilities), be a conforming or legally conforming use under the current zoning ordinance of the city and not be in violation of the city’s zoning code.
• Applicants must be an existing business at least 6 months prior to March 1, 2020 and preferably have filed 2019 taxes.

Questions?

For more details on how to start the process please visit the Cloquet Business Assistance Loan page. 

If you have questions regarding this program, please submit those via our Contact Form and we will be in touch as soon as possible.