Economic development is on the rise in Sherburne County, and the County EDA is helping make that happen.

 

Wednesday, about 40 people attended a Community Partners meeting at the Oak Savanna Learning Center at the Sherburne National Wildlife Refuge.

 

The Community Partners is a group of stakeholders focused on sharing resources and information and improving the lives of citizens.

 

Each time the group meets there are a number of guest speakers who talk about relevant issues like education, health, business opportunities and economic development.

 

One of the guest speakers Wednesday was Kevin Weeres, vice president of Central Minnesota Development Company. (CMDC). CMDC administers the county’s revolving loan fund, which helps businesses by providing low-cost, low-interest gap financing.

 

The funding program was started early this year. Under the program, a business can apply for a loan from $25,000 up to $100,000 at an interest rate 1/2% below the prime rate. The money can be used for land and building acquisition, land improvements, new building construction, building renovation and modernization, machinery, equipment and fixtures.

 

It can’t be used for things like refinancing a debt, working capital, residential real estate, paying taxes or professional fees.

 

Amounts available to applicants are determined based on an evaluation of positive economic impact and the number of full time (or full time equivalent) non-seasonal jobs that the organization will maintain or create within Sherburne County.

 

Weeres talked about two success stories in Sherburne County that came about as a result of the fund.

 

One is an advertising/service business in Becker that included a building purchase and building improvements. The business used $28,500 in equity, then secured $204,000 in bank financing and  $48,000 in gap funding through the revolving loan program.

 

Another  is an automotive repair business that purchased land and constructed a building. The project cost $420,000. Of that amount, the Initiative Foundation put in $75,000 and the county’s revolving fund added another $50,000.

 

Weeres said both projects had issues that might have prevented them from getting financing.

 

“One of them didn’t meet the eligibility requirement for the Small Business Association (SBA). The other was because of the size of the project,” he said. “Neither one of these projects would have gotten done if it wasn’t for this program.”

 

More information about the revolving loan fund, and other business funding, can be found on the economic development page of the county’s website, www.co.sherburne.mn.us, under business/financial assistance.