Business financing in Fillmore County.

Business financing is money you borrow or access to start, run, or grow a business — and then pay back over time, sometimes with interest. It is different from a personal loan because the money is meant for business use: buying equipment, covering payroll, renovating a workspace, purchasing inventory, or bridging a slow season.

The most common types you will encounter in Fillmore County include:

• **Term loans** — You borrow a fixed amount and repay it in monthly installments over a set period (one to ten years is common for small businesses).

• **Lines of credit** — A revolving credit limit you draw from and repay as needed, good for cash-flow gaps.

• **Microloans** — Smaller loans (often $500–$50,000) offered by nonprofit lenders called CDFIs, designed for new or small businesses that may not yet qualify at a traditional bank.

• **Equipment financing** — A loan or lease tied specifically to a piece of equipment; the equipment itself often serves as collateral.

• **SBA-backed loans** — Loans made by local banks or CDFIs and partially guaranteed by the U.S. Small Business Administration. Because the government reduces the lender's risk, these loans can have lower rates and longer repayment terms than conventional loans.

None of these options require you to give up ownership of your business. Financing is a tool — not a partnership or a trade-off of control.

Fillmore County sits in southeastern Minnesota's bluff country, anchored by the city of Preston and communities like Spring Valley, Harmony, Lanesboro, and Chatfield. The regional economy is driven by agriculture (dairy, row crops, and specialty farms), rural tourism along the Root River Trail corridor, healthcare, and a growing number of trades and service contractors.

Lenders who work in this region understand these realities. Here is what generally matters when a lender looks at your application:

**Time in business** — Most conventional lenders want to see at least two years of operating history. CDFIs and microloan programs often work with businesses that are six months old or even brand new, as long as you have a solid plan.

**Credit score** — Traditional banks typically look for scores of 650 or higher. CDFI and microloan programs may work with scores as low as 550, or in some cases no score at all, depending on other factors.

**Revenue and cash flow** — Lenders want to see that your business earns enough to cover a loan payment. Seasonal businesses (a common pattern in agriculture and tourism here) can often provide annual averages or explain their seasonal cycle.

**Collateral** — Assets like equipment, land, vehicles, or inventory can back a loan. But many microloan programs in Minnesota do not require hard collateral if your business plan and character references are strong.

**ITIN borrowers** — If you do not have a Social Security Number but do have an Individual Taxpayer Identification Number (ITIN), you can still qualify for financing through several lenders in this region. Mainstream banks are less likely to work with ITIN-only applicants, but CDFIs like Midwest Minnesota Community Development Corporation (MMCDC) and Greenway CDFI have experience serving this community.

**Solo contractors and self-employed workers** — Even if your business is just you, you can qualify. You will need to show business income separately from personal income, which is why having a separate business bank account matters.

Getting organized before you talk to a lender saves time and shows you are prepared. Requirements vary by lender and loan type, but the following list covers most applications you will encounter in Fillmore County.

**For all applicants:**

• Government-issued photo ID (driver's license, passport, or consular ID)

• ITIN or Social Security Number

• Two to three years of personal tax returns (or one year if you are a newer business)

• Two to three years of business tax returns (if applicable)

• Three to six months of business bank statements

• A brief description of your business and what you plan to use the loan for

**If you have been in business for at least one year:**

• Profit and loss statement (your lender or accountant can help you build this)

• Balance sheet (a snapshot of what your business owns and owes)

• Current accounts receivable and accounts payable lists, if applicable

**If you are starting a new business:**

• A written business plan with financial projections for at least one year

• Any existing contracts, letters of intent from customers, or pre-sales

• Personal financial statement

**For SBA loans:**

• SBA Form 1919 (borrower information)

• Business licenses and registrations

• Lease agreements or property documents (if applicable)

**Tip:** Many CDFI and nonprofit lenders in Minnesota offer free one-on-one advising to help you gather and organize these documents before you apply. You do not need everything perfect before reaching out — they will guide you.