Local and Regional

 

The Kasson EDA Revolving Loan Fund program is a "gap financing" tool used to assist in the financing of local business projects which would otherwise lack the required funding. This program is designed to work in combination with private sector financing (banks) and is not intended to be a source of primary financing. The Revolving Loan Fund program provides various gap financing loan amounts at below market interest rates. Proceeds from the Revolving Loan Fund may be used for land or building acquisition, new construction, building renovation, site improvements, machinery, equipment, fixtures, and working capital. 

 

Any projected located within the City of Kasson (or within 2,000 feet of City boundaries) that meets the eligibility requirements may pre-apply for a loan from the Kasson Economic Development Authority. The full application process is available on page 4 of the Revolving Loan Guidelines available in the link below.

 

• Revolving Loan Fund Guidelines and Policies
• Revolving Loan Fund Pre-Application

Business Facade Improvement Program
The Business Facade Improvement Program is a matching grant program to encourage businesses to improve their facades and overall curb appeal. Matching grants provide 50% of a project's up to $2,000 per project. Eligible projects include, but are not limited to, painting, landscaping features, awnings, signage, window rehab, and improved lighting. Click on the link below for a complete list of eligible projects, program guidelines & process, and the application.

• 2023 Business Facade Improvement Program Packet
  • Page 1-2: Guidelines
  • Page   3 : Application
  • Page   4 : Application Process

Tax Increment Financing
Tax Increment Financing, commonly referred to as "TIF", is a public financing method used as a business subsidy for real estate development projects. TIF may be employed to help finance redevelopment, infrastructure, and other community-improvement projects. TIF captures the additional property taxes paid as a result of the increase tax revenues from a development project to pay for a portion of the development costs. 

To inquire about TIF with the City of Kasson, please contact Community Development Assistant Ian Albers or City Administrator Timothy Ibisch. 

Tax Abatement 
Tax Abatement is a business subsidy through which a portion of property taxes are rebated back to the property owner, who then uses the rebate to help offset commercial development, redevelopment, or relocation costs. Tax abatement is less complicated and less restrictive than Tax Increment Financing and is useful for smaller projects. 

To inquire about TIF with the City of Kasson, please contact Community Development Assistant Ian Albers or City Administrator Timothy Ibisch. 

For more information on programs and resources available from the Kasson EDA, please contact the Kasson EDA with any questions or comments. As always, the EDA happy to help and connect you with the right resources for your business!  

REGIONAL PROGRAMS and RESOURCES

Construction Mitigation Loan Program
To assist existing businesses with their immediate cash flow needs created by loss of traffic and revenues due to road construction projects in the City of Kasson.   Find more information here. 

Southern Minnesota Initiative Foundation (SMIF)
SMIF is a donor supported foundation that invests in economic growth in the 20-county region of Southeastern Minnesota. Some key initiatives SMIF works to support are economic development, early childhood development, and community vitality. The following is a list of some pertinent programs SMIF operates to support these regional initiatives:

• Loan Funds:
  • Business Loans
    • Loans of up to $200,000 targeting several key industries: manufacturing, technology, local foods, agriculture, and health care.
  • Building Block Loans 
    • Loans of up to $15,000 to support the business of family child care.
  • Small Enterprise Loans
    • Micro loans up to $35,000 provided through a partnership with the SBA to support small business owners or start-up entrepreneurs who create service, retail, local foods, and manufacturing businesses.
• Equity Funds:
  • Seed Fund
    • Up to $25,000 to support start-up stage businesses that need capital, business expertise, and networking opportunities. This fund helps companies perform research and analysis, patent opinions and filings, and product testing and analysis.
  • Southern Minnesota Equity Fund
    • Up to $100,000 in financial capital and expertise to early state and start-up companies. The Fund partners with other organizations and individual investors to leverage capital and expertise to grow innovative companies who will provide economic opportunities for Southern Minnesota.

Southeast Minnesota SCORE
SCORE, America’s premier source of free, confidential small business advice, was founded in 1964 as a nonprofit resource partner of the U.S. Small Business Administration (SBA). The Southeast Minnesota Chapter of SCORE provides free and confidential one-on-one business mentoring tailored to meet the needs of your small business and your personal objectives. The chapter also offers Local Workshops for a modest fee, for both start-up and in-business entrepreneurs. Clients have access to dozens of local face-to-face mentors and hundreds of e-mail mentors throughout the country.

Check out the Southeast Minnesota SCORE Chapter website for more information, such as their office location, upcoming events, or to get in touch with the organization.

Southeast Minnesota Small Business Development Center (SBDC)
The SE Minnesota SBDC offers no cost, confidential consulting to help businesses in the region identify, understand, and overcome the challenges of starting a business, running a successful business, and developing exit strategies. The SBDC provides professional expertise and guidance that every small business owner needs to flourish in today's business world. The SBDC can work with business owners and financial institutions to prepare documentation that lenders require for business loans. The SBDC also hosts business seminars to keep you up to date on business trends and solutions. 

For more information, seminar dates, and contact the SBDC, please visit the SE SBDC website.

504 Corporation
The 504 Corporation is a non-profit organization certified by the U.S. Small Business Administration (SBA) to provide financial assistance to small businesses. The 504 Corporation works with the SBA and lenders to deliver the 504 loan program to small businesses. The 504 loan program's primary goal is to create and retain jobs. The program also aims to increase the real estate tax base, expand manufacturers, expand rural economies, and assist women, minority, and veteran owned businesses.

To learn more about the 504 Corporation and the 504 loan program, please visit the 504 Corporation website.

Rochester Area Economic Development Inc. (RAEDI)
RAEDI assists existing and potential businesses in the Rochester area secure the private and public resources needed to execute their growth plans. Since its inception, RAEDI has assisted hundreds of businesses that have generated more than $2billion of local economic activity and have created thousands of jobs. RAEDI services include financial packaging, business planning, site/location support, and business/community advocacy. 

For more about RAEDI and their services, please visit their website.