Loan Programs
Loan Programs
The 1200 Fund provides incentive, expansion support, childcare and startup loan options for businesses in multiple phases of growth within the City of Duluth. With the funding provided, businesses create new jobs, childcare availability, and the ability to bring a business continued success. Loans from the Duluth 1200 Fund are intended to address a gap in the financial package necessary to complete a project, not replace business owner equity contributions or traditional bank lending.
Loan amount: maximum of $100,000
Term of loan: Up to 17 years
Other special requirements: Provides funding for purchases, expansions for owned buildings, including equipment expenses to sustain the business. As a gap financing program, another financial institution will be required to match or exceed the amount requested from this program in addition to owner equity.
Loan forgiveness: Up to 50% of the loan principle may be forgiven after two years of the jobs that have been created have also remained available for the public. Quarterly job reporting will need to be completed to remain eligible for forgiveness.
Loan amount: $3,000 - $15,000
Term of loan: 5 - 10 Years, based on the loan amount
The Childcare Collaboration Grant provide gap financing for licensed Duluth childcare providers who are starting up or expanding within Duluth city limits.
Loan amount: Grants requests may not exceed $100,000.
Other special requirements: The 1200 Fund's assistance shall not exceed 25% of the total.
How To Apply
Is my business eligible?
If your business is located within the Duluth city limits and needs financial support to complete a project or expansion, the 1200 Fund has a loan option for you.
How do I apply?
After determining the right loan program for your business needs, fill out a pre-application (available at the bottom of this webpage). A city of Duluth staff member will contact you within five business days requesting additional eligibility information.
Why should I pursue a Duluth 1200 Fund loan?
The 1200 Fund board is comprised of area business leaders, skilled financial experts, business professionals and even past borrowers who believe in the non- profit’s objective to assist business and entrepreneurs. Loans are provided to fill the financial gap needed to take a project to completion, these programs can help businesses who need that final helping hand to advance their project. Some of the programs offer loan-forgiveness if certain requirements are met.
Customer Testimonials
Northland Special Events dba Josephine's Bridal
When I began planning for the build out for Josephine's Bridal, I knew I would need funding partners for the project. From the moment I reached out to the 1200 Fund to the project ribbon cutting, the 1200 exceeded my expectations. The process for applying, the collaboration with my partnering lenders, and the clear communication and expectations made the loan experience easy and stress-free. The 1200 Fund worked behind the scenes with 2 other lenders to put together a funding package that met all of my needs and required a minimum amount of time and effort on my part - think one common portal for document uploads! I loved meeting with the Board and presenting my plans, as it truly showed the community involvement of this organization. Members of the Board and staff made every effort to support the journey, including attending our grand opening and ribbon cutting. Duluth is incredibly blessed to have an organization like this to support small business and community economic development.
Mariah McKechnie, Josephine's Bridal
Duluth Pottery and Tile
The 1200 fund allowed the Duluth Pottery to grow by providing gap funding to put a roof on my new old building. Now we...our new team...can grow and be a solid part of the Duluth Business and work community!
Karin Kraemer, Duluth Pottery
OMC Smokehouse
The effort that goes into restoring an old building is daunting.It takes more than just finances to start up a business. It takes a team. Partnering with the city has given us the confidence to know we are all in this together. Restoring and rebuilding Lincoln Park's charm is a goal that we can all do better together. Leveraging the costs is critical in keeping the financial well being in line so we can get past the hurdles and create a vibrant tax base for long term success.
Tom Hanson, OMC Smokehouse
Contact Us
Contact Info
411 West 1st Street, Room 160
Duluth, MN 55802
218-730-5580
Board Members
- Laura Mullen (President)
- Julie Pierce (Vice-President)
- Emily Vikre
- Fred Lewis
- Jebeh Edmunds
- Simone Giaacomelli
- Tara Swenson (Council Representative)