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Three more flood recovery loans are approved for area businesses |
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By Charlie Warner
Argus News Editor
There more business flood recovery loans were approved by the Houston County Board during the March 25 meeting. The three loans will help Houston County businesses recover from the flash floods of August 2007.
The three businesses and the loan amounts were:
•Ace Telephone Association of Houston- $41,300, $30,975 of which will be forgivable in 10 years;
•Rushford Golf Club of rural Rushford- $7,129, $5,347 of which will be forgivable in 10 years;
•Tri-State Auto of Hokah- $398,242, $298,682 of which will be forgivable in 10 years.
The Flood Recovery Loan Program is part of a grant agreement created by the state of Minnesota for up to $5 million in economic aid to businesses affected by the August 2007 floods. It includes $4,903,000 for business loans in Houston County, and $97,000 to administer the program. The program will be administered through the Southeast Minnesota Development Corporation and the Houston County EDA.
Assistance is primarily for flood damages, although an assistance category has been made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
Flood damaged businesses can utilize MIF recovery funds for not only “flood damages” but also to assist with construction, even if at a new location, with special provisions for leveraging other funds.
The program is geared to helping reopen and re-establish businesses to retain and create jobs.
A direct loan may cover up to 100 percent of documented flood losses, not to exceed $500,000. Seventy-five percent of the loan shall be forgivable at the end of 10 years of continuous operation of the business with 50 percent of the forgivable amount (up to a maximum of $100,000) forgiven at the end of five years, and the balance declining 20 percent per year and totally forgiven after 10 years. The other 25 percent of the loan is repayable as a low interest loan with the first payment deferred for three years.
So far, the county board has approved five such loans. According to Houston County EDA Director Joyce Iverson, she currently has potential applications that could total approximately $800,000 in additional loans, and will be working closely with those businesses.
Because Houston County is serving as the fiscal agent in this program, it will be receiving approximately $300,000 that will go into the county’s EDA revolving fund. The revolving fund can be used for any type of business loan administered through the county EDA.
In other board action:
SG shop issues
Tom Molling of the County Highway Department informed the board something will need to be done soon with the drain system at the county’s highway shop near Spring Grove.
The shop currently has city water, but not city sewer. The state Environmental Protection Agency (EPA) has voiced concern with the existing drain field and septic system and the fact that when county trucks are washed, salt, grease, oil, and other pollutants might not be properly filtered.
Molling said the county has several options:
•Cap the existing floor drains and install holding tanks that can be pumped out;
•Install a filtering system; or
•Request city sewer service with Spring Grove.
Molling was instructed to get prices on the various options and report back to the board.
Bridge work approved
The board approved a resolution accepting the right of way plat for the reconstruction project on bridge # 6936 on CSAH 32 in Mayville Township. The project calls for the rebuilding of the bridge and also re-aligning the county road. The bridge is located one-half mile north of the junction with County Road 249, four miles east of Caledonia.
You can contact Charlie Warner at
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