Commercial Real Estate Loans
We offer financing for the purchase or construction of all types of commercial real estate property. We have financed retail stores, manufacturing facilities, office buildings, service buildings, convenience stores and grocery stores. We are especially strong in financing resorts and campgrounds. We even finance restaurants. We also offer loans for expansion or refinance of existing commercial property. Loans are secured by a mortgage on the commercial property. Loan terms are up to 24 months for construction and up to 20 years for permanent financing. Fixed and variable rates are available. Loan amounts range from 70 - 80 percent of the property value or purchase price.
Equipment/Vehicle Loans
We offer flexible terms and great rates for financing the purchase, repair or refinance of business equipment or vehicles. Loan terms are available from 5 to 10 years. Loan amounts range from 60 - 75 percent of the equipment value or purchase price.
Inventory/Working Capital Loans
These loans are used to finance start-up or expansion of inventory and working capital. Loans are generally secured by a lien on all business assets. Loan amortization terms range from 3 to 5 years. Loan amounts range from 60 to 70 percent of the asset values pledged.
Lines of Credit
For short term working capital or seasonal cash flow needs. Generally secured by inventory and receivables and a lien on all business assets, credit lines are expected to revolve. Loan terms are up to 12 months. Loan amounts range from 60 to 70 percent of the asset values pledged.
SBA 7(a) Loans
Real estate or equipment loans or lines of credit with a guarantee of 50 to 85 percent of the loan amount from the U.S. Small Business Administration. SBA guaranteed loans allow small businesses to obtain financing on terms that would otherwise be unavailable.
SBA 504 Loans
We work with a Certified Development Company (CDC) for the purchase of real estate or equipment. The bank loans 50% of the project, the CDC loans 30 to 40 percent, and the borrower contributes 10 to 20 percent. SBA 504 loans offer long-term fixed-rate loans on the CDC portion, and allow small businesses to obtain financing on terms that would otherwise not be unavailable.
How to Apply
Northwoods Bank strives to reach loan decisions quickly, as we realize our customers are busy and want to get timely answers. To expedite the process, it is very helpful to come prepared and know what documents and information the business banker will need. Much of the documentation is required to comply with current regulations.
Existing Businesses
To get started, we will ask for the following information:
After we receive your information, we can usually give you an answer in a matter of days. Once approved, the loan can be closed anywhere from a couple days to a couple months, depending on the type and complexity of the loan. We use local appraisers, attorneys and title companies to provide you with the fastest and best service possible.
If you would like to start the application process, you may contact us at (218) 732-7221, email This email address is being protected from spambots. You need JavaScript enabled to view it. or fill out this contact form.
New / Start-up Businesses
Congratulations on deciding to start your own business! You have come to the right place. As a locally owned bank, our loan decisions are made locally. Our lenders understand the local market and can help review your business plan and can customize a loan to meet your individual needs. We can point you to resources to help you develop feasibility studies, business plans and financial projections. All are important factors in determining the success of your new venture.
At this stage, you have most likely put a lot of thought into your new business, and may be just one step - financing - away from making it happen. Northwoods Bank can help you take that last step and turn your idea into a business.
To get started, we will ask for the following information:
Business Plan
A business plan is essentially your business idea on paper. A business plan will typically include a business description, industry analysis, and analysis of competitors, market analysis, marketing plan, management plan and a financial plan, among other things.
Click here for a sample business plan to help get you started.
Financial Projections
3 to 5 years of projected revenues and expenses. Revenue and expense projections should be explained and supported by industry data.
After we receive your information, we can usually give you an answer in a matter of days. Once approved, we will work hard to get the loan closed quickly. The time frame depends on the type and complexity of the loan. We use local appraisers, attorneys and title companies to provide you with the fastest and best service possible.
