The Blue Earth Economic Development Authority (EDA) discussed its loan and grant programs on Thursday morning, May 11, and decided to offer the business community two additional opportunities to receive EDA funding.

EDA specialist Amy Schaefer introduced the idea of a new Business Micro Loan Program as a resource for businesses seeking smaller loans.

“A lot of EDA programs have a micro loan program with a set interest rate, for a set number of years,” Schaefer explained. “It seems like a viable option for a smaller dollar amount.” 

Schaefer added the program could be particularly useful for business owners who work, but do not live in Blue Earth, so they can borrow locally rather than from an out-of-town banking institution.

“We haven’t written loans a lot lately, so this would be a good way to get some loans rolling,” Schaefer added.

The EDA discussed interest rates, and decided to set the program’s rates at the current prime interest rate, minus a half a percent. The rate would remain fixed for three years.

The proposed program would offer loans up to $10,000.

Schaefer will bring a finalized proposal for the Business Micro Loan Program for the EDA’s approval at their next meeting on Thursday, June 8.

The EDA also approved a new Utility Revolving Loan Fund, which will assist local businesses with improvements involving lighting, HVAC and electrical work.

Schaefer said the proposal for the new loan program has been reviewed and approved by Blue Earth Light & Water.

The EDA approved the new program. The EDA also approved a change to the Commercial Business Improvement Forgivable Loan form which will direct applicants to the Utility Revolving Loan Program for utility-related improvement projects.

Finally, the EDA discussed the cap for its loan and grant programs. The EDA has determined it will award two forgivable loans up to $25,000 each this year, and maintain a total cap of $75,000 for grant programs.

So far, in 2023, the EDA has awarded a total of $5,697 in loans and grants to local businesses.

The board decided it is comfortable with the current program caps, but Schaefer agreed to keep the EDA informed of the status of the loan and grant funds throughout the year.

“Otherwise, we will leave the caps as-is for now,” she concluded.

In other business, the Blue Earth EDA:

• Awarded Linda Bromeland a Training Financing Forgivable Loan in the amount of $500, which she will use to offset the cost of a pharmacy technician training course.

• Awarded TJD Repair & Service a $14,000 loan, which will contribute toward the cost of a $113,000 roof repair project.

• Awarded Armon Decorating a $5,000 commercial loan to offset the cost of a $13,390 improvement project. The business plans to redo six upper-east windows which are old, and no longer energy efficient.

• Awarded Dikken’s Furniture & Decorating a $5,000 commercial loan toward a $15,500 improvement project to refurbish exterior walls, which are causing leaks inside the building.

• Approved Resolution 23-01 conveying EDA-owned property at the Prairie View Addition to Joshua Anderson and Cora Haas for $21,500.

• Approved an easement agreement between the EDA and the State of Minnesota and Central Minnesota Power Agency for Faribault County, which will allow the agency ease of access to their building behind the Ag Center. In return, the EDA will be able to pile snow on the agency’s property.

• Learned that the EDA has been accepted into CEDA’s new Rural Business Innovation Lab, held in partnership with Compeer. The EDA’s project will center on Makotah Veterinary Center, and developing a socially, economically and environmentally sustainable rural veterinary clinic model.

• Received an update from Schaefer regarding her attendance at SMIF’s annual Sprout event on April 20.

“I was able to connect with Tim Penny to get his advice about how to effectively advocate to state representatives to make policy change,” Schaefer said.

She hopes to implement the advice to counter the state’s current requirement that a veterinary clinic must be owned by a veterinarian.

• Learned that a recent International Student Workshop facilitated by Kivu Immigration Law was a success, and a second workshop may be planned in the future.

• Learned that the Ag Center will host a COPAL MN-sponsored resource fair on June 1, at 3 p.m. The resource fair will be geared toward the area’s Spanish-speaking population.

• Approved the disposal of 10 pieces of outdated electronic equipment which is currently in the Ag Center’s conference room. The project will cost $150.

• Approved the purchase of a projector cable from Midwest IT for $30.95.