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Flood recovery loan applications approved for four area businesses |
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By Charlie Warner
Argus News Editor
Financial relief for some Houston County businesses affected by the August floods was approved by the Houston County Board during the Jan. 8 meeting. Houston County EDA Director Joyce Iverson presented the board with four business applications for consideration to be part of the Business Flood Recovery Loan Program.
After reviewing the applications, the board granted approval. The four businesses and the amount of their requests included:
•Twin Creeks Golf of Hokah- $129,727;
•ACE Telephone Association of Houston- $40,300;
Crest Precast Inc. of La Crescent- $193,438;
Rushford Golf Club Inc, of rural Rushford- $6,129.
The 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 will be primarily for flood damages, although an assistance category will be made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
Flood damaged businesses should also be allowed to 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.
Iverson stated she had reviewed the final policy changes with County Attorney Rick Jackson and the Houston County EDA. The changes were acceptable to everyone.
When the county board first reviewed the proposal program with Iverson in November, there was some concern that the county might be liable for the 25 percent repayable portion of the loan. Iverson assured the county board at the Jan. 8 meeting that the necessary funds had been approved by the state and “the county would not be on the hook for the other 25 percent.”
A motion to approve the four applications was unanimously approved by the board.
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