On April 7, 2020, the Preston Economic Development Authority (EDA) announced their COVID-19 Emergency Economic Development Loan Program. According to Cathy Enerson, the EDA Director, “The loans will be used to provide assistance to small local businesses directly during the COVID-19 pandemic event. The loan is intended to be interim financial aid to help keep businesses operating and a part of the tax base once the pandemic is over”. The loan terms provide for 0% interest and repayment over five years.
In an effort to enhance that program and to help businesses located within the City of Preston, the Preston Area Community Foundation (PACF) and F & M Community Bank (F & M) are together adding $10,000 to the $30,000 loan program fund for a total loan fund of $40,000. Those dollars are to be used by the EDA to forgive 25% of the loan which a business takes out through the loan program. For example, if a business borrows the maximum $3,000, they will only need to pay back $2,250 of that.
The PACF obtained a grant in the amount of $5,000 from the Southern Minnesota Initiative Foundation (SMIF). SMIF created a Community Foundation Relief Fund which PACF tapped to the maximum by committing $1,700 of the PACF’s funds. Mary Schwarz, the current chair of the PACF board, said, “We saw the need in the community as well as the opportunity to support the community by partnering with SMIF to provide some funds for the EDA loan program. It’s times like this when a local foundation like PACF can make a meaningful impact.”
When Dan Christianson, CEO of F & M learned about the loan program and PACF’s and SMIF’s grants, he decided F & M could help as well. “Supporting the Preston business community and PACF is something we’ve made a priority for many years”, stated Christianson. “So we decided we would contribute $3,300 to the EDA fund to help with the forgiveness portion of the loan program. In addition, we will make a donation to PACF in the amount of $1,700 to cover their portion of the program. This will allow the PACF to maintain their fund balances for future opportunities like this.”
The EDA has received six applications so far. Additional loan funds are still available on a first come, first served basis. Loan applications can be obtained by contacting Cathy Enerson at (507) 951-3532 or cathy.enerson@cedausa.com.
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