Michele Hard, owner of Michele’s Sewing and Quilting Center, left, and Shawna Hannaman, owner of Refresh Salon and Spa, right, both benefited from the Blue Earth EDA’s loan programs in 2022. They used their awarded funds to make improvements to their Main Street businesses.

Like a watchful gardener, the role of a local Economic Development Authority (EDA) is to water its community’s seeds of economic promise and, with luck, watch them grow into successful businesses.

One impactful service EDAs provide is distributing funds through loan and grant programs. When awarded at the right time, the funds provide businesses with the boost they need to get off the ground running.

The Blue Earth EDA received a surge of interest in its various loan programs this year. In 2022, it distributed a cumulative $75,000 in forgivable loan funds and $47,660.20 through other grant programs.

It also implemented a brand new program this year: an in-home provider grant designed to help local child care providers fund improvements to their in-home businesses, which are subjected to a lot of wear-and-tear.

This year, a total of 18 Blue Earth businesses received financial awards from the EDA. Refresh Salon and Spa, owned by Shawna and Mike Hannaman, was one of them.

The salon was one of three businesses which received a $25,000 forgivable loan from the EDA in 2022. The program’s purpose is to promote and provide for the continuation of existing businesses in Blue Earth.

The Hannamans applied for the loan after purchasing Classic Cuts Salon. They are using the funds to partially finance the installation of new chairs, a dispensary sink, a washer, a half-wall, a tanning bed and signage, as well as new products and interior paint for the salon.

The improvements cost an estimated $75,000, $50,000 of which the couple is funding themselves and $25,000 of which was loaned by the EDA.

Hannaman shares the planned improvements are currently underway.

“Coming in, (the loan) was a huge help,” Hannaman says. “It’s kind of amazing how many funds a small town has available.” 

Michele Hard, owner of Michele’s Sewing and Quilting Center, applied for a different EDA program: the Commercial Improvement Loan Program.

After relocating to the former Ankeny Furniture building, Hard used the funds to help finance the many improvements she made to the space.

Last spring, Hard repainted the interior of the store, installed new lighting, ceiling tiles and carpet, refinished the floors and re-did the bathroom. She also put up new signage and an awning outside.

She used the funds she was awarded by the EDA to cover the awning’s installation.

Hard says she had been aware of the EDA’s loan programs for awhile, and decided it would be a good idea to inquire about funding for one of her projects.

“It’s always good to know what your options are and if you can get any help with updates,” she says.

Other EDA boards in the county provide similar opportunities to local businesses.

The Wells EDA offers a plethora of loan and grant programs, including a Commercial Building Enhancement Grant which businesses can use to make improvements to their buildings, a revolving loan fund and a Child Care Forgivable Loan Program to aid in the process of creating new licensed and quality child care slots to offer local families.

The board has also introduced a new grant opportunity: the COVID-19 Loss of Revenue Relief Grant, which helps area businesses that experienced a loss of revenue during the pandemic. Wells dedicated $25,000 in American Rescue Plan Act (ARPA) funds to the program, and eligible businesses may receive up to $5,000.

In 2022, the Wells EDA distributed $16,899.55 in Commercial Building Enhancement grants, $7,000 in revolving loan funds and $2,000 in COVID-19 Loss of Revenue Relief funds.

The Winnebago EDA also offers several programs, including an Exterior Grant Program which is a dollar-for-dollar matching program with a maximum grant award of $6,000, and revolving loan funds. In 2022, the EDA distributed $74,000 to nine area businesses: $33,000 in Exterior Grant funds and $41,000 in revolving loan funds.

Amy Schaefer, Blue Earth’s EDA specialist, says she enjoys seeing local businesses use their awarded funds to make a successful start.

“Oftentimes, I have the pleasure of starting at the very beginning with new business owners,” Schaefer says. “It’s very rewarding watching the process of developing a business plan, figuring out cash flows and projects and seeing all the work that these business owners put in before the request for money is even an option.” 

She concludes, “Our business owners work hard, and I’m just thrilled that I can assist them on behalf of the EDA.”