ECONOMIC DEVELOPMENT

The MMDC provides a variety of economic development assistance to both local units of government and directly to new and existing businesses.  MMDC staff work closely with city and county economic development professionals with many economic development activities.

MMDC is federally designated by the U.S. Economic Development Administration (EDA) as an Economic Development District.  This designation enables the local units of government in the counties of Region Six-East to apply for U.S. Economic Development Administration funds to pursue projects that help to reach the goals identified in the Region’s Comprehensive Economic Development Strategy (CEDS).  The CEDS is a five year plan, updated annually, with goals and objectives developed with input from local economic development professionals, community leaders, and local citizens. 

You may download a copy of the most recent CEDS document by clicking on the News/Publications link listed on left.

Please contact Economic Director Les Nelson for questions and further information on MMDC’s economic development assistance and programs.

MMDC’s Economic Development Services

Services offered:

• Prepare Financial Packaging for Grants and Loans
• Assist with Loan Applications
• Identify Sources of Assistance
• Develop Strategic Planning
• Design Economic Development Plans
• Develop Business Plans
• Identify Tax Increment Finance Districts
• Prepare Grant and Loan Applications
• Tax Free Zones (JOBZ)

Mid-Minnesota Revolving Loan Fund

The Mid-Minnesota Development Commission on behalf of the Counties of Kandiyohi, McLeod, Meeker, and Renville, have established a revolving loan fund (RLF) with the assistance of the participating counties, the federal Economic Development Administration, the Southwest Minnesota Foundation, The State of Minnesota, and the MMDC. 

RLF Eligible Businesses:

• Must be a for-profit business located in the Region’s four counties.
• Businesses must be deemed viable and involve job creation/retention.
• Businesses must demonstrate a need for gap financing.

 

Use of Funds: Building, Equipment, Land, Working Capital 

Loan Terms:

Amount:  $5,000 minimum / $100,000 maximum

(Note: Amount available limited to the number of jobs retained or created, i.e. Average one job per $10,000 loaned.) 

Rate:  Average two (2) points below prime. 
Terms: Terms may vary depending on the use of funds and analysis of repayment.

• Working Capital:  5 years maximum
• Machinery & Equipment: 5 year balloon; 10 – 15 year amortization.
• Real Estate: Up to 10 year term with a balloon payment; amortized up to 20 years maximum.
  

Structure: Up to one-third (33%) of project cost may be financed through the RLF.  At least two-thirds (66%) of the project must be financed by other sources, the majority of which must be private.  Ten percent equity is preferred. 

Other Program Requirements:

Fees: 

• Credit check fee, due at time of full application.
• 1.0% origination fee required, due at closing
• Legal and filing fees are paid by the applicant if loan is closed.

Regulations:

• Federal Civil Rights
• Davis-Bacon.
• A.D.A. requirements
• Business must be a “small business” as defined by the Small Business Standards. (i.e. Manufacturing < 250 employees)

Small Business Development Center Services

The Mid-Minnesota Development Commission has entered into a contractual agreement with the Small Business Development Center - Southwest office located on the campus of Southwest Minnesota State University in Marshall. The agreement is to provide small business counseling services to small business owners in the counties of Kandiyohi, McLeod, Meeker, and Renville.

Please read the Small Business Development Center Services brochure for more information.

The Guide to Starting a Business in Minnesota, produced by the Department of Employment and Economic Development, is a concise summary discussion of major issues, questions, and concerns that are most commonly raised by those contemplating a business startup.

Contact: Les Nelson, Economic Development Director 320-235-8504 Ext 241