The city of Lanesboro was recently awarded $100,000 in USDA grant funds to support business development, expansion, and succession. This is Lanesboro’s second $100,000 grant within a four-year span. The purpose of the USDA grant program is to promote economic development and job creation. Applicants for these grant funds, such as the city of Lanesboro, compete for grant dollars in two separate categories: business opportunity grants and business enterprise grants. Recipients of the grants use the funds to capitalize a city-specific revolving loan fund. In the past four years, Lanesboro has invested $225,000 in local revolving loans. The city’s loan funds are generally used to complement current or new business owners’ investments, often filling the gap for the purchase of inventory, leasehold improvements, downpayments, business expansion, cash flow, and other eligible uses. The city issues loans for up to seven years at an interest rate often more competitive than the prime rate. As loan payments are made to the city, grant funds are deposited back into the city loan fund, allowing future loans to be issued which results in continued support for rural business development.
The City of Lanesboro revolving loan fundcurrently has a total of $130,000 to lend and has approximately $213,350 in outstanding loans. Current Lanesboro mayor, Jason Resseman, had a goal to capitalize the city revolving loan fund, something that has been accomplished by the Lanesboro Economic Development Authority not once, but twice, during Mayor Resseman’s terms in office. When businesses start up, grow, or a building is sold or built, the city generally sees a rise in its tax base, which in turn offsets rising expenses within the city, thus in theory lessens the burden of those rising expenses being placed on the city taxpayers.
To learn more about the loan program, view the guidelines, and to apply, visit www.lanesboro-mn.gov/economic-development-authority or contact EDA Director Cathy Enerson at cathy.enerson@cedausa.com.