Initiative Foundation – Business Financing

The Initiative Foundation works to create economic opportunity by lending funds to locally owned businesses.

The Initiative Foundation is certified as a Community Development Financial Institution, or CDFI. The certification from the U.S. Department of the Treasury’s CDFI Fund signifies that the Foundation meets stringent requirements as a financing entity with a primary mission of promoting community development.

The Foundation’s business loans work to strengthen communities and diversify local economies. In partnership with other lenders, the Initiative Foundation offers loans to entrepreneurs who ...

• Wish to start or expand a locally owned business.
• Have a sound business plan and acceptable credit.
• Create quality jobs with living wages and benefits.
• Advance local and regional goals for target industries.

A diversity of financing programs

The Initiative Foundation offers the following business financing programs to meet diverse regional needs:

• Direct Business Loan Fund - up to $500,000 for value-added agriculture and manufacturing companies that bring new revenue to communities.
• Technology Capital Fund - up to $500,000 for emerging high-tech ventures and technologies that increase productivity.
• Green Business Loan Fund - up to $500,000 for businesses that preserve the environment, reduce energy demands or recycle existing waste streams.
• Nonprofit Loan Fund - up to $75,000 for the creation or expansion of mission-related earned-income/social enterprise activities carried out by eligible nonprofit organizations. Loan proceeds may be used for working capital, equipment acquisition and/or facility improvements.
• Lender Match Loan Fund - up to $75,000 for manufacturing, technology, wholesale and other businesses. In partnership with financial institutions, this fund provides crucial capital to minimize the out-of-pocket cash outlay otherwise needed for a down payment on the purchase of equipment or real estate.  

The Initiative Foundation places an emphasis on technology-based and green businesses as well as value-added manufacturing and agriculture operations. Nontraditional business owners such as women and minorities are especially encouraged to apply. Business loans are competitive and subject to review by staff and a volunteer committee. Loans may require 90 days to review and close based on complexity and documentation.

Initiative Foundation loans are seldom more than 50 percent of a total financing package. Terms require a personal guaranty. The Foundation does not award grants to businesses, nor does it finance alcohol, tobacco, gambling, or pornography businesses.