Posted: 9/4/07
Business recovery fund created by SMIF to assist flood victims
By Charlie Warner
Argus Editor
Former U.S. Congressman Tim Penny brought encouraging word to area business owners affected by the recent floods in Southeastern Minnesota. While addressing the Houston County Board at the August 28 meeting, Penny, who was recently named president and CEO of the Southern Minnesota Initiative Foundation (SMIF), outlined a new recovery fund earmarked to help businesses that suffered losses to the floods.
"While there are low-interest loans available to business people, you still have to pay the principal and the interest back. With the devastating losses many in this portion of the state suffered, it would be very difficult for a business to start over and have all that debt service," Penny explained.
"This would be a granting program, not a loan program," Penny continued. "The grants would be available for equipment, supplies, things needed to get these businesses up and running."
Currently, there is $120,000 available. SMIF and AgStar Financial Services initiated the fund with $25,000 each. Also providing support are General Mills Foundation ($25,000), AgriBank, FCB ($10,000), Anne and Scott Jones through the Annesco Fund ($10,000) and Blue Cross Foundation ($25,000).
SMIF will manage the allocation of funds utilizing its business and community development expertise. AgStar Financial Services is also challenging other businesses to match their donation to this grant program and help those most directly impacted by this disaster.
"We recognize this is a very critical time for the small business owners in the affected communities," said Penny. "Their immediate need for grants to help them re-open their businesses is something we can assist with through this new fund," he added.
SMIF hopes others who want to invest in a longer-term community rebuilding effort will direct additional financial resources to this fund. The Foundation expects to have eligibility and application information available on its website at
Tax-deductible contributions to the Business Recovery Fund can be mailed to SMIF, PO Box 695, Owatonna, MN 55060. For more information contact Suzy Meneguzzo at 507-455-3215 or by e-mail at About SMIF SMIF, a donor-supported foundation, is building stronger communities and businesses in 20 southern Minnesota counties. The Foundation has provided over $36 million in grants and loans within the region during the past 21 years. In addition, SMIF has leveraged well over $113 million to support local business and community development. SMIF was established by The McKnight Foundation in 1986 to foster growth and vitality in greater Minnesota. To learn more about our work and mission call 507-455-3215 or visit Caledonia Argus E-Mail: editor.argus@ecm-inc.com
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