Economic Development Authority Board

Minnesota Small Business Loan Guarantee Program

The Minnesota Department of Employment and Economic Development (DEED) now offers the Minnesota Small Business Loan Guarantee Program. This temporary program, established in response to the 2020 public health emergency, will help Minnesota lenders provide capital to small businesses in Minnesota affected by COVID-19. These loans can be used for a variety of purposes and can be subordinate to other financing. Allowable loan uses must be exclusively in Minnesota and include machinery or equipment purchases, maintenance, or repair; expenses related to moving into or within Minnesota; and working capital when the working capital is secured by fixed assets when possible. 

Below is some informational material to find out more options available for Small Businesses who have been affected by the Corona virus. 



DEED Creating Emergency Loan Program for Minnesota Small Businesses

Thousands of businesses negatively impacted by COVID-19 could be helped

March 23, 2020

Contact: Rita Beatty
Rita.Beatty@state.mn.us

St. Paul – The Minnesota Department of Employment and Economic Development (DEED) is creating an emergency loan program to help Minnesota small business owners who need immediate assistance to meet their families’ basic needs during COVID-19 closures.

The loan program was created under the Small Business Assistance Executive Order 20-15 announced by Governor Tim Walz on March 23. The loan program is intended to help businesses temporarily closed under Executive Order 20-04, later clarified by Executive Order 20-08, which stopped onsite customer dining at restaurants and bars and closed an extensive list of other small businesses whose owners may not have adequate cash flow to withstand temporary closure.

“Over the last week, we’ve heard from many of Minnesota’s small businesses who are facing significant hardships because of the COVID-19 crisis,” said Governor Tim Walz. “Small businesses are the backbone of our communities, and now more than ever, we’re looking to creative solutions like DEED’s emergency loan program to help them weather these extraordinarily difficult times.”

“We know that this emergency loan program is just one tool businesses will need to leverage to stay afloat,” said DEED Commissioner Steve Grove. “ It’s an important one because it will get cash flowing quickly to the small Minnesota businesses that need it most.”

Executive Order 20-15 directs DEED to create a Small Business Emergency Loan Program by making available $30 million from special revenue funds. These dollars will be used by DEED’s lender network to make loans of between $2,500 and $35,000 for qualifying small businesses. The loans will be 50% forgivable, and offered at a 0% interest rate. If other financing becomes available to small businesses that received an emergency loan, such as federal funding, the emergency loan must be repaid. These emergency loans will be made by an existing network of lenders DEED works with across the state. Depending on the size of the loans offered to businesses, DEED estimates this emergency loan program will provide needed resources to between 1,200 and 5,000 businesses. DEED expects loan applications will available later this week through our lender network. Minnesota small businesses should send questions about this emergency loan program to ELP@state.mn.us.

The executive order also allows local units of government or lending partners which have a revolving loan fund to use those funds to issue loans to retail and service providers for the next 90 days. DEED estimates that up to $28 million in capital could be accessible through local revolving loan funds and local governments through this action. Local partners will be looking at ways to deploy these resources to support their local businesses.

For the latest information from DEED for employers and businesses and workers, visit the DEED COVID-19 Information page on the DEED website.

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and its services, visit the DEED website or follow DEED on Twitter.

Disaster Loan Assistance

Federal Disaster Loans for Businesses, Private Non-profits, Homeowners and Renters
Congress has just passed the Coronavirus Aid, Relief and Economic Security (CARES) Act which is intended to assist business owners impacted by the pandemic. There are a number of programs and initiatives available to small businesses. 



PIPESTONE ECONOMIC DEVELOPMENT AUTHORITY BOARD


The Economic Development Authority Board was established in order to promote the economic, commercial, and industrial development and redevelopment of the City. The Board consists of seven (7) members, three of whom must be members of the City Council and four of whom may be any citizen residing in the City. All commissioners are appointed by the Mayor with approval of the City Council.

The terms of the four commissioners who are not members of the City Council will have initial two, three, four and five years respectively, and thereafter will have six-year terms. The terms of each commissioner who is a member of the City Council shall coincide with that commissioner's term of office as a City Council member.
 

EDA HELPS CITY ADDRESS BLIGHTED PROPERTIES

The Pipestone EDA has taken an active role in the City’s effort to eliminate blight in Pipestone. Thanks to generous donations from local businesses and residents, the EDA purchased and remodeled 2 homes that had been condemned. Under the direction of the MN West Carpentry Instructor, MN West  students and Pipestone Area High School students did much of the remodeling of the 2 homes, gaining valuable “hands on” experience.

Upon completion, the EDA sold the homes, recouping its costs and putting 2 once condemned properties back on the tax rolls, benefiting the County, School District and City.  The EDA has just begun a 3rd remodeling project with completion expected in Spring of 2020. This joint effort by the EDA, City, MN West and Pipestone Area Schools is a unique project that is helping to reduce the number of blighted properties in the City and add to the City’s tax base. Contact Jeff Jones at 507-825-3324 for more information. 


Meeting Location

  • Council Chambers
    City Hall
    119 2nd Ave. #9
    Pipestone, MN 56164

 Phone: (507) 825-3324

EDA Members

Kevin Paulsen President January 2022
Jim Stout Secretary/Treasure January 2021
Jeremy Whipple Member January 2022
Robert Woodbury Member January 2022
Myron Koets Mayor January 2021
Dave Kor Member January 2021
Rodger Smidt Council Liaison January 2023
Meets 2nd Monday of each month at 5:15 p.m.

Contact Information

  1. Jeffrey R. Jones


    City Administrator
    Email             
                                                    
    **City Office Building--119 2nd Ave. SW--Pipestone MN 56164**
    Ph: 507-825-3324 Fx: 507-825-5353