Business financing in Todd County.

Business financing means borrowing money — or accessing grants or lines of credit — to start, grow, or stabilize a business. Real estate financing means getting a loan to purchase, improve, or refinance a property you use for a business or rental income.

In rural areas like Todd County, these two types of financing often overlap. A contractor may buy a small commercial property to operate out of. A farmer may want to add a rental unit. A new shop owner may need equipment and a building at the same time.

The most common tools include:

• **Term loans** — A fixed amount borrowed and repaid over time with interest. Good for equipment, renovations, or buying property.

• **Lines of credit** — Flexible borrowing up to a set limit. Good for managing seasonal cash flow, which matters a lot in Todd County's agricultural economy.

• **Microloans** — Smaller loans (often $500–$50,000) from CDFIs or nonprofit lenders. Easier to qualify for than traditional bank loans.

• **SBA-guaranteed loans** — The U.S. Small Business Administration does not lend directly; it encourages local banks to lend by guaranteeing part of the risk. This makes it easier for lenders to say yes to borrowers they might otherwise turn down.

• **State and county grants** — Sometimes available for specific industries, rural development, or underserved entrepreneurs. Grants do not need to be repaid.

Knowing which tool fits your situation is the first step. The local intermediaries listed in this guide can help you figure that out.

Todd County is a rural, largely agricultural county in central Minnesota, anchored by the city of Long Prairie. The economy includes farming (dairy, row crops, livestock), food processing, construction trades, retail, and a growing Latino community — particularly in Long Prairie — with deep roots in meatpacking and food industry work.

**You may qualify for local financing if you:**

• Are a sole proprietor, LLC, or small corporation operating in Todd County

• Are a solo contractor (construction, landscaping, trucking, cleaning, etc.)

• Own or want to purchase rental or commercial real estate in the county

• Have been in business at least 6–24 months (requirements vary by lender)

• Have some form of income you can document, even if informal

• Have an ITIN (Individual Taxpayer Identification Number) instead of a Social Security number — several lenders in this region welcome ITIN borrowers

**You do NOT need:**

• Perfect credit — many local CDFIs work with credit scores below 650

• A long U.S. credit history — alternative credit documentation is often accepted

• Collateral for every type of loan — microloans and some SBA programs have flexible collateral rules

Todd County's rural and underserved status actually opens doors to programs specifically designed for places like this. USDA Rural Development programs, Minnesota rural business grants, and CDFI microloan funds all prioritize counties with limited access to conventional credit.

Every lender is different, but gathering these documents before you apply will save you time and reduce stress. Start a folder — paper or digital — and collect:

**For Business Loans:**

• Government-issued photo ID (passport, consular ID, or state ID — ITIN lenders accept more forms)

• ITIN or Social Security number

• Most recent 2 years of personal tax returns (or business tax returns if filed separately)

• 3–6 months of bank statements (personal and/or business)

• Proof of business registration (Minnesota Secretary of State certificate, DBA filing, or LLC articles)

• A simple business plan or written description of what your business does and how you will use the loan

• Profit and loss statement (even a handwritten one showing income and expenses can help)

• Any existing business debts or leases

**For Real Estate / Property Loans:**

• All of the above, plus:

• Property address and description

• Purchase agreement (if buying) or deed (if refinancing)

• Recent appraisal or property tax statement

• Rent rolls if the property has tenants

**If You Are ITIN-Based:**

• ITIN letter from the IRS

• Tax returns filed with your ITIN for at least 2 years

• Utility bills or lease agreements showing your address

• Reference letters from suppliers, landlords, or community organizations can help

Do not be discouraged if you are missing something. A good CDFI or credit union loan officer will tell you exactly what they need and may be able to work with alternative documentation.