Economic Development Authorities (EDAs) play a critical role in supporting rural communities by providing financial tools and guidance. In Fillmore and Houston Counties, two key EDA programs, Revolving Loan Funds (RLFs) and grants, serve as essential resources for both new and existing businesses, non-profit organizations, and government entities.
A community’s approach to economic development varies. Some towns do not have an Economic Development director or board, such as Canton, Whalan, and Houston, and instead rely on the county’s EDA department. Some area communities contract with CEDA (Community and Economic Development Associates), located in Chatfield, Minn., including Fillmore County, Rushford Village, Harmony, and Spring Valley. Other communities share an Economic Development Director, such as Preston and Lanesboro. Some towns have economic development boards such as Mabel and Spring Grove.
Revolving Loan Funds
An RLF known as a “gap loan” bridges the difference between total project costs and what traditional bank financing/owner equity can cover.
The application process is similar across communities and counties, though deadlines vary due to meeting schedules, and some do not have any deadlines, such as Rushford Village. Detailed information, applications, and deadlines can be found on the cities or counties’ websites.
City Clerk Steve Schuldt explained Eitzen’s process, “Past EDA lending has begun with the local bank as the primary lender, with the city as a gap lender.”
The Ostrander City Clerk shared that, with only four businesses in town, there are limited applicants for loans. Ostrander’s EDA has only ever offered one loan, and that was over 15 years ago.
According to Caledonia EDA President Matt Schuldt, “EDA funds have been invested back into the community for various projects. We have funded property rehabilitation, new equipment, business expansion, and many more projects. Currently Caledonia was involved in the Caledonia Convenient Care and the future Alpha Performance Center.”
In Chatfield, “Over $60,000 has been invested over the past year, with over $900,000 invested since its inception. The Hilltop Estates Building Incentive Program offers New Construction Incentive features such as: water and sewer hook-up fees waived, water and sewer fees charges waived $500 or up to 6 months, $10,000 down payment cost and 2% of the purchase price from the developer through closing offering up to a $24,000 savings.”
Over the past two years, Wykoff EDA funds have supported Rahe Sunshine Farms and Gateway Cafe.
According to Houston County EDA Director Allison Wagner, in 2025 the EDA did a $125,000 loan for Snow Pac Foods, which is building a $7 million cold storage facility in Caledonia.
Mabel EDA Board President Kirsten Wyffels explained that Mabel does not have application deadlines and encourages interested parties to attend EDA meetings on the second Wednesday of every month with a business plan and proposal. Currently, Mabel is working to address the need for low-maintenance housing opportunities.
Preston and Lanesboro both have funds available for additional loans and encourage business owners who may be considering a project to reach out. Over the past year, the Lanesboro EDA has invested in four local businesses through its revolving loan program: Raging Root Adventure Arcade, the Lanesboro Golf Club, Clara’s Eatery, and The Scoop.
Wagner noted that Houston County currently has $192,555.34 to lend from their EDA revolving loan fund and is encouraging businesses to apply.
Jayme Longmire (CEDA) shared that “A new concrete business has purchased land in Rushford Village and hopes to start building this year.” She noted that this business is not utilizing the RLF, yet.
Spring Grove City Clerk/Administrator Jana Elton shared that the city’s revolving loan fund remains available, offering low-interest financing to support local businesses.
Grants
Houston County EDA offers a grant specifically for childcare providers, administered in partnership with Workforce Development Inc. and the Houston County Childcare Core team. Wagner shared, “In 2025 we did $38,558.20 in grant dollars to Houston County Childcare providers.”
Chris Hahn, CEDA, shared a list of grants awarded in Fillmore County that the CEDA team authored or helped facilitate: MN Dept. Of Education Library Construction Grant for $165,000 in matching grant funds to the Spring Valley Public Library; MN Historical Society Grant for $104,901 and Southern MN Initiative Foundation (SMIF) Small Town Grant for $10,000 for restoration of the historic Harmony McMichael Grain Elevator in Harmony; Taylor Family Farms Grant in the amount of $23,000 for the Spring Valley Food Shelf; First Children’s Finance, Rural Child Care Improvement Project (RCCIP) grant in the amount of $46,000 to address childcare needs in Fillmore County.
Recent grant awards in Spring Grove include $695,000 from the Minnesota Department of Education for the Spring Grove Library construction. Additional funding supported recreational and planning efforts, including a $10,050 grant for a new disc golf course in Trollskogen Park, as well as feasibility studies for housing development and childcare needs. The city’s Fix-Up Fund has also been re-established.
Contacts
- Fillmore County: Allison Whalen (CEDA), 507-993-8688
- Houston County, Allison Wagner, 507-725-5836
- Caledonia, Jake Dickson, 507-725-3450
- Chatfield, Alison Bentley, 507-867-1523
- Eitzen, Steve Schuldt, 507-495-3017
- Harmony, Chris Hahn (CEDA), 612-327-9729
- Lanesboro, Michelle Marotzke, 507-467-3722
- Mabel, Kendra Spalla, 507-493-5299
- Ostrander, Wendy Brincks, 507-657-2505
- Preston, Michelle Marotzke, 507-765-2153
- Rushford Village, Mary Miner, 507-864-7974; Jayme Longmire (CEDA), 608-792-7558
- Spring Grove, Jana Elton, 507-498-5221
- Spring Valley, Chris Hahn, (CEDA), 612-327-9729
- Wykoff, Rebecca Schmidt, 507-352-4011
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