News

Information below is being shared from a Nov. 29, 2022, DEED newsletter.

The Minnesota Department of Employment and Economic Development (DEED) launched the Automation Loan Participation Program this week as part of the recently announced $97 million through the State Small Business Credit Initiative (SSBCI).  

This program provides companion loans from DEED to cover financing gaps and expand financing opportunities for businesses purchasing machinery, equipment, or software to increase productivity and automation.   

DEED loans through the new program can be worth up to $500,000 and need to be made in conjunction with private financing. Applications are open now. Full terms and requirements are available on DEED’s website. 

Eligible borrowers include manufacturing, distribution, technology and warehousing businesses located in Minnesota. The program targets businesses with fewer than 500 employees.  

Companion loans from DEED must be matched at least 1:1 by private financing. Both the ALPP loan and the private financing must be used for machinery, equipment or software to increase productivity and automation.  

Regardless of the terms of the other private financing, the ALPP loan will have the following terms: 

Loan amount up to $500,000  1% interest rate  The term will be 5 to 7 years based on the life of the asset  Payments may be deferred 6 to 12 months  If requested by lead lender, DEED can take a subordinate position on collateral 

Additional considerations: 

The loan may not be used for the same purpose as any federally guaranteed private financing being used for the project.  The machinery, equipment or software the business will purchase totals less than $20,000,000. 

This information is shared from a Nov. 1, 2022, DEED newsletter. 

The Minnesota Department of Employment and Economic Development (DEED) launched the Growth Loan Fund today as part of the recently announced $97 million through the State Small Business Credit Initiative (SSBCI). This program provides direct loans from DEED to technologically innovative seed- and early-stage businesses.  

The federal government has approved Minnesota for up to $97 million in small business financing support, which allows DEED to carry out its commitment to help small businesses grow and succeed. The Growth Loan Fund supports entrepreneurial growth throughout Minnesota. 

DEED is now accepting applications from businesses seeking financing from the program. 

Informational webinar 

Businesses interested in participating in the Growth Loan Fund Program are invited to join a webinar with DEED officials on Friday, November 4 at 1:00 p.m. 

Applicants must be seeking equity investments in a funding round that includes at least one venture capital fund or accredited investor.  Loans range from $100,000 to $400,000 based on 20% of the total investment in the defined funding round, not to exceed 12 months subsequent to loan approval. The business must complete at least 70% of the proposed equity raise to remain eligible for the loan. 

Eligible businesses must meet one of the following criteria: 1) been certified to participate in the Angel Tax Credit (ATC) Program; 2) be identified by a venture or angel fund for investment; or 3) be identified by an individual accredited investor for investment. 

To qualify for funding through the Growth Loan Fund, businesses need to be engaged in, or be committed to engage in, technological innovation in Minnesota. The primary business activity must include one or more of the following: 

Using proprietary technology to add value to a product, process or service in a qualified high-technology field;  Researching or developing a proprietary product, process, or service in a qualified high-technology field;  Researching, developing, or producing a new proprietary technology for use in the fields of: agriculture, tourism, forestry, mining, manufacturing, or transportation; or  Researching or developing a proprietary product, process or service in the fields of agriculture, tourism, forestry, mining, manufacturing, or transportation (no technology component required). 

Lorna LaGue, MMCDC Board Member, 2016-2022

We are saddened to learn of the passing of our board member, Lorna LaGue. Lorna was elected in 2016 to MMCDC’s Board of Directors as a representative of Mahnomen County. She has been an active director, and chaired two of our committees and served on others. She helped select a new President–a task of many hours and much responsibility. Lorna brought many unique perspectives and experiences to her work, and we are truly grateful for her service. We will deeply miss her.

If you are behind on your mortgage or other related bills, or are worried about foreclosure due to the pandemic, HomeHelpMN from Minnesota Housing may be able to help. Visit HomeHelpMN.org or call 1-800-388-3226 to see if you qualify for financial assistance.

Program Handout

Get Ready Checklist

The Home Ownership for Me Down-payment Loan program is available in Becker County.

This second-mortgage loan is available to qualified buyers for purchase of a home as their primary residence. There are no monthly payments and no interest on the loan, but it must be repaid when the home is sold or at the maturity of the first mortgage.

A loan is available to households who are employed and reside in Becker County and who meet income guidelines. Guidelines for family sizes of 1-4 are below – larger families also are eligible.

Household size

80% AMI

Loan Amount

115% SMI

Loan Amount

1 Person

$46,700

Up to $5,000

$104,000

Up to $3,000

2 Person

$53,350

Up to $5,000

$104,000

Up to $3,000

3 Person

$60,000

Up to $5,000

$119,600

Up to $3,000

4 Person

$66,650

Up to $5,000

$119,600

Up to $3,000

The program is being operated by Midwest Minnesota Community Development Corporation (MMCDC). In order to receive a HOMe loan, buyers must qualify for and receive a first mortgage through MMCDC or another source, such as local banks. Income limits are updated annually, based upon federal income guidelines.

“To help ensure long-term success, all HOMe borrowers participate in free homebuyer education and housing counseling,” MMCDC President Julia Nelmark said.

The effort started with participation in a Housing Institute offered by Minnesota Housing Partnership (MHP), a statewide affordable housing nonprofit. Home Ownership for Me resulted from their discussions, which focused in part on housing needs of the Becker County workforce.

“The Homeownership for Me program is a perfect example of how local stakeholders can work collaboratively to address housing needs in their community,” said Barbara Dolan, MHP Deputy Director, Community Development.

Participants in the Minnesota Housing Partnership Housing Institute in Detroit Lakes included the Becker County Economic Development Authority, Essentia Health, the Detroit Lakes Regional Chamber of Commerce, Mahube-Otwa Community Action Partnership, the City of Frazee, the City of Detroit Lakes, Midwest Bank, Detroit Lakes Housing and Redevelopment Authority, and MMCDC. Funding providers have included Becker County EDA, Detroit Lakes Development Authority, City of Frazee, Essentia Health, BTD and Arvig.

For an application, click here to go to the HOMe page .

Pine Villa offers 1-bedroom apartments plus a community room and a park-like setting within easy driving distance of Park Rapids and Wadena. Updated in 2017, most units feature walk-in showers and newer appliances and floor coverings. Each unit has air conditioning, and there is ample on-site parking. 

Pine Villa offers affordable, independent living and is a one-of-a-kind offering within our group of properties. Constructed for disabled and elderly adults, it is our only community that allows pets and the only one with rent set at 30 percent of the resident’s income. Income and program limits apply.

Call 218-847-5641 for an application and information or email Amanda Parteka.

 

 

The waiting list is open for the Becker County Housing Choice Voucher Program. The program offers rental assistance to qualifying households residing in areas of Becker County located outside of the Detroit Lakes city limits.

This rental assistance program is funded by the U.S. Housing and Urban Development office (HUD); households must meet income guidelines. For more information and a pre-application, contact Becker County EDA — MMCDC Housing, 119 Graystone Plaza Suite 100, Detroit Lakes, MN 56501; 218-847-5641; or info@mmcdc.com.

Items needed for pre-application include:

Name of household members Date of birth for household members Social Security number for household members Current mailing address Current telephone number Approximate income

Midwest Minnesota Community Development Corporation serves as program manager for the Becker County Economic Development Authority.

“Our waiting list is shorter than it has ever been, so if you are a qualifying renter who needs rental assistance, now is a great time to add your name,” MMCDC Housing Specialist Robyn Beck said.

This institution is an equal opportunity provider and employer.

Beginning Wednesday, Aug. 4, the U.S. Small Business Administration (SBA) is launching an application portal to allow borrowers with Paycheck Protection Program loans of $150,000 or less to apply for loan forgiveness directly through the SBA, according to a press release.  

PPP Loan Forgiveness

MMCDC is among the lenders that has opted to allow its borrowers to use the streamlined application process. An SBA customer service team will be available to answer questions and directly assist borrowers with their forgiveness applications.  Borrowers that need assistance or have questions should call (877) 552-2692, Monday – Friday, 8 a.m. – 8 p.m. EST.

 “The SBA’s new streamlined application portal will simplify forgiveness for millions of our smallest businesses — including many sole proprietors — who used funds from our Paycheck Protection Program loans to survive the pandemic,” said Administrator Isabel Casillas Guzman.  “The vast majority of businesses waiting for forgiveness have loans under $150,000. These entrepreneurs are busy running their businesses and are challenged by an overly complicated forgiveness process. We need to deliver forgiveness more efficiently so they can get back to enlivening our Main Streets, sustaining our neighborhoods and fueling our nation’s economy.”

A pandemic made the 50th year of Midwest Minnesota Community Development Corporation a memorable one, necessitating service in unprecedented ways.

At the 2021 annual meeting, MMCDC President Julia Nelmark noted swift action by the staff and board to allow clients to weather negative impacts without potential loss of home or business. This included:

Modifying $14.5 million in existing loans, and providing $7.4 million in Paycheck Protection Program and small business emergency loans, Prioritizing resident safety and support in rental housing, and Delivering workforce housing despite supply chain and other barriers as well as free volunteer tax preparation using socially distanced models.

We really have a great staff – a lot of skill, many years of experience in a lot of cases, a lot of drive to help the people in the communities, so it is really thanks to those staff that we accomplish what we do. – MMCDC President Julia Nelmark

Highlights of the June 17 event in Detroit Lakes included a congratulatory video from U.S. Sen. Amy Klobuchar and in-person remarks by former Congressman Collin Peterson. Peterson recalled working together with MMCDC following creation of the Low-Income Housing Tax Credit (LIHTC) program. The program ultimately delivered new investment in affordable housing around the country, including seven apartment buildings now owned by MMCDC.

Calvin Benson, District Outreach Representative for U.S. Rep. Michelle Fischbach (R-Minn.) delivered in-person remarks, and Gov. Tim Walz issued a Certificate of Recognition.

Former MMCDC President Arlen Kangas, Ph.D., was recognized for his 25-year tenure as company president, in particular for work with the White Earth Investment Initiative, a subsidiary company. In turn, he noted the support of Collin Peterson, and the contributions of longtime staff member Doris Kohler and the late John Masog, board director. Both began service to the company in the 1970s. Also recognized was Kathy Misson, retired MMCDC Vice President, Mortgage Lending, and retiring board director Janet Green. 

Incoming board director Lisa Weber was elected to represent Becker County. Directors adopted restated bylaws and elected the following officers: Chairman Paul Ihle, Vice Chairman Gary Thibert, Treasurer Jeff Haukebo and Secretary Breanna Adams.  Additional previous staff and board members in attendance at the event included: Ida McDougall, Detroit Lakes; Judy Quam (Becker County Director); Germaine Riegert (Mahnomen County); Larry Roed (Polk County); Kathy Henry (Hubbard County); and Dale Macklanburg (Hubbard).

 

MMCDC President Julia Nelmark reports on company performance. Treasurer Jeff Haukebo, Hubbard County, delivers a financial summary; at left is Chairman Paul Ihle, Pennington County. Collin Peterson served as congressman for 30 of MMCDC’s 50 years. Former MMCDC President Arlen Kangas, who served in that role for 25 of MMCDC’s 50 years. More than 70 people attended the June 17, 2021, MMCDC annual meeting and 50th anniversary celebration, held at the Historic Holmes Theater in Detroit Lakes, Minn. Calvin Benson sends greetings from U.S. Rep. Michelle Fischbach.