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Recovery loan program provides $1.6 million to Houston County businesses |
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By Charlie Warner
Argus News Editor
Four more Business Flood Recovery Loan Program applications were approved by the Houston County Board during the June 17 meeting, bringing the total number of disaster recovery loans to 14. According to County EDA Director Joyce Iverson, the 14 loans totaled $1,639,382, of which $385,595 will be paid back to a Houston County EDA revolving fund.
The four loan applications that were approved included:
•Jake’s Main Street Saloon, Hokah, for Judy Lonkoski and Rita Christianson- $11,485 of which $8,614 will be forgivable and $2,871 will be paid back over a seven-year period.
•Loken Auto Sales & Service, Inc. Houston for John Loken- $16,382 of which $12,287 will be forgivable and $4,095 will be paid back over a seven-year period.
•Money Creek Haven, Houston, for Wayne Fitting- $383,115 of which $287,336 will be forgiven and $95,779 will be paid back over a seven-year period.
•Alpine Nursery, Houston, for Ben and Linda Lind- $19,550 of which $14,663 will be forgiven and $4,887 will be paid back over a seven-year period.
Iverson noted that the 14 loan applications that have been approved will probably be the last for the Business Flood Recovery Loan Program, which was instituted to help businesses in the county recover from the August 2007 floods.
“We’re at the end of the timeline for this program. I think it went well and I feel we have been able to help a lot of people and businesses that were devastated by last August’s floods,” Iverson concluded.
The Flood Recovery Loan Program was 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 included $4,903,000 for business loans in Houston County, and $97,000 to administer the program. The program was administered through the Southeast Minnesota Development Corporation and the Houston County EDA.
Assistance was primarily for flood damages, although an assistance category was made available to non-flood damaged businesses to increase the overall economic activity in Houston County.
Flood damaged businesses could 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 was geared to helping reopen and re-establish businesses to retain and create jobs.
A direct loan could cover up to 100 percent of documented flood losses, not to exceed $500,000. Seventy-five percent of the loan could 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.
You can contact Charlie Warner at
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