Evolving Loan Fund

ABOUT

Revolving loan funds are community-based tools that provide accessible, low-interest financing for small businesses and entrepreneurs. Instead of depleting resources, repayments replenish the fund so it can be loaned out again and again.

Over time, this creates a cycle of growth: one loan gets paid back, those funds are lent again, and the impact compounds across decades. he Evolving Loan Fund (ELF) builds on this model by offering straightforward terms and active Main Street support to help Elkader businesses start, grow, and thrive.

Main Street Elkader – Economic Vitality Committee (2025)

PURPOSE

The Evolving Loan Fund is more than a pool of money—it’s a structured plan to build Elkader’s economic future. By recycling capital through monthly repayments, the fund grows while it works, compounding its impact far beyond the original contributions.

Every loan creates an immediate benefit for a local entrepreneur, while each repayment fuels the next opportunity. Over decades, this structure provides a reliable, sustainable engine for community vitality, ensuring Elkader businesses have the resources to not just survive, but expand, innovate, and build long-term prosperity.

Application Guidelines

Applicable Uses:

This loan program is designed to help businesses start new ventures or expand existing revenue streams, whether that means launching a storefront, updating a property, or investing in critical tools and inventory.

Loans may be used for:

Property and/or business acquisition
Property and/or business improvements
Business-related equipment purchases
Business-related inventory purchases

Qualifications:

Applicable Uses:

Applicants must:

Be located within the City of Elkader
Submit a fully completed application form
Provide a written business plan
Provide collateral (required if loan exceeds $6,500)
Provide additional information if requested

Terms:

Applicable Uses:

Terms:

Term: 5 years
Max Principal: $10,000
Repayment Schedule: Monthly
Collateralization: Required if loan exceeds $6,500
Interest Rate: 3%

Approval

All loan applications will be subject to a review process to ensure both the strength of the applicant’s business plan and the long-term sustainability of the fund. After an application is received, the applicant will meet with two members of the Main Street Elkader Small Business Committee. During this meeting, the committee members will review the submitted business plan, ask clarifying questions, and evaluate the project’s potential impact on Elkader’s economy.

Following the review, the committee members will prepare a recommendation based on their findings. This recommendation will then be relayed to the Main Street Elkader Board, which holds the final authority to approve or deny the loan application. This process ensures accountability, fairness, and community oversight, while also giving applicants the chance to receive valuable feedback and guidance from experienced local business leaders.

Reaching Out (10 Days Past Due):

Right to Cure (60 Days Past Due):

Reaching Out (10 Days Past Due):

If a payment is missed and becomes 10 days overdue, the Main Street Director will personally reach out to the borrower.

The goal at this stage is not punitive but supportive—opening communication, identifying any short-term challenges, and working with the borrower to quickly get the loan back on schedule.

Remediation (30 Days Past Due):

Right to Cure (60 Days Past Due):

Reaching Out (10 Days Past Due):

If the loan reaches 30 days past due, the case moves into remediation. At this point, the borrower and the Economic Vitality Committee will meet to review the situation and negotiate a plan to resolve the delinquency.

Adjustments may be considered, such as revised payment arrangements, to both safeguard the business and protect the fund.

Right to Cure (60 Days Past Due):

At 60 days overdue, the loan enters the formal “right to cure” stage. This initiates a legal and financial process that provides the borrower one last opportunity to bring the loan current before default proceedings begin.

While this is a serious step, the emphasis remains on resolution, giving the borrower a structured path to correct the delinquency and preserve their standing.

Part of the Main Street Elkader Economic Vitality Committee.

SMALL BUSINESS COMMITTEE

Vinny Schmelzer

2 Years in Community Banking

Jared Funk

21 Years in Community Banking

Tony Hauber

5 Years in Community Service

ADVISORS

Michael Erickson

8 Years combined in Community Banking and Service

Adam Weigand

26 Years in Community Banking

Robert Hauber

40 Years in Community Banking

The participation of individual professionals in the planning process does not constitute an endorsement or financial commitment by them or their affiliated institutions.

EVOLVING LOAN FUND

ABOUT

PURPOSE

Application Guidelines

Applicable Uses:

Applicable Uses:

Applicable Uses:

Qualifications:

Applicable Uses:

Applicable Uses:

Terms:

Applicable Uses:

Terms:

Approval

Remedial Policies

Reaching Out (10 Days Past Due):

Right to Cure (60 Days Past Due):

Reaching Out (10 Days Past Due):

Remediation (30 Days Past Due):

Right to Cure (60 Days Past Due):

Reaching Out (10 Days Past Due):

Right to Cure (60 Days Past Due):

Right to Cure (60 Days Past Due):

Right to Cure (60 Days Past Due):

Evolving Loan Model:

Part of the Main Street Elkader Economic Vitality Committee.