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Trump Administration Invests $841,000 in Rural Business Development in Minnesota

Name
Nikki Gillespie
City
ST. PAUL
Release Date

Training and technical help focuses on both start-ups and established ventures

ST. PAUL, Minn., – Oct. 27, 2020 – U.S. Department of Agriculture (USDA) Rural Development State Director for Minnesota Brad Finstad today announced that USDA is investing $841,505 for nine organizations to help small business development and growth in rural Minnesota. Funds will help to create or retain nearly 100 rural jobs.

“This highly competitive grant is a valuable tool for organizations focused on rural small business expansion through training, technical assistance, and other economic development opportunities,” said Finstad. “The RDBG offers even more value through funds leveraged well beyond a single community or county. USDA is glad to partner with such dedicated organizations in service to rural Minnesota entrepreneurs. Under the leadership of President Trump and Agriculture Secretary Perdue, USDA has been working tirelessly to be a strong partner to rural Minnesota in building stronger and healthier communities, because we know when rural America thrives, all of America thrives.”

In Minnesota:

  • 4-Directions Development Inc. will use a $171,505 grant to provide business development services to Native American entrepreneurs located on the Red Lake Reservation. Business development services will include training and technical assistance related to marketing, management, and business planning. Industrial site development funds will be used to build out the existing business including counter tops, display cases, security gates, and internal wall dividers. This project will support business development and expansion through job creation and retention and support of local financial activity.
  • The city of Ada will use a $50,000 grant to finance a revolving loan fund that they will then administer to help develop local small and emerging private businesses. Potential projects include helping a local broadcasting company expand its current workforce, assisting a family-owned hardware store with product expansion, helping a new coffee shop purchase essential equipment for operation, and providing a newspaper with the means to increase workforce and address changes within the field.
  • The city of Baudette will use a $24,001 grant to re-capitalize a revolving loan fund established in 2010. In partnership with the Headwaters Regional Development Commission, the city will then administer the funds to assist local small and emerging businesses with job retention, diversification of local economic opportunities, and improvement of the rural workforce.
  • The Crookston Housing & Economic Development Authority will use a $99,000 grant to further the strategic goals of the City of Crookston’s “Crookston Tomorrow Comprehensive Plan 2035” to encourage local economic growth by attracting small business development. Project funds will assist Epitome Energy with establishing a soybean facility and biodiesel production plan near Crookston, Minn.   
  • The Dawson Economic Development Authority will use a $99,999 grant to finance a revolving loan fund that will be administered to local small and emerging businesses in partnership the Upper Minnesota Valley Regional Development Commission. Potential projects include service expansion for a local massage business, expand workforce for a local car dealership, and more.
  • The Northeast Entrepreneur Fund, Inc. will use a $98,000 grant to finance the organization’s Rural Opportunity Fund that will support entrepreneurs and small business development in rural communities across 11 counties in Northeast Minnesota.
  • Leech Lake Financial Services will use a $100,000 grant to support business development on or near the Leech Lake Reservation. Project funds will help provide training, consulting services and existing incubator build-out to improve local business sustainability, small business creation, long-term business planning, and increased loan repayment rates.
  • The University of Minnesota Crookston will use a $100,000 grant to offer technical assistance to small and emerging private businesses. Project funds will help to hire legal, accounting and business development experts who will focus on participation among the growing Latino community in Crookston, Minn.
  • The city of Warren will use a $99,000 grant to establish a revolving loan fund to assist local businesses and entrepreneurs with energy efficiency improvements and enhance downtown revitalization. Warren’s ‘Energy Efficiency Revolving Loan Fund” will be used to help nine local businesses implement energy efficiency infrastructure and save on their bottom line, ultimately contributing to the economic revitalization of the area.
  • Wilkin County will use a $100,000 grant to establish a revolving loan fund in support of small business development county-wide. Project funds will be used to provide financial opportunities for job creation and retention, diversification of the local economy, technical training for the rural workforce, and infrastructure upgrades for improved public health, safety, and/or medical care of rural residents.

Funds are being provided through USDA’s Rural Development Business Grant (RDBG) program. Grants may be used to support targeted technical assistance, training, and other activities leading to the development or expansion of small and emerging private businesses in rural areas with fewer than 50 employees and less than $1 million in gross revenues. Rural public entities including towns, communities, state agencies, authorities, nonprofits, institutions of higher learning, federally-recognized tribes, and rural cooperatives may apply. To learn more, contact a local area office.

USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit
www.rd.usda.gov/mn.

If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.

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