Luverne EDA offers zero-percent loans

Another form of financial relief is available for local businesses affected by the pandemic economy.
Luverne Economic Development Authority took action Monday on federal aid through the Rural Business Enterprise Grant (RBEG) Program Revolving Loan Fund.
In 2013 the LEDA received a $150,000 grant from the USDA to establish the RBEG Revolving Loan Fund, which at the time supported Luverne’s Façade Improvement Program.
LEDA used matching grants so that improvements could be funded with a 35-percent loan (from RBEG revolving loan fund) and a 35-percent grant from the city with the rest from private equity.
LEDA director Holly Sammons said her office loaned out $150,000 and granted $150,000 to complete 13 façade improvements in the L-shaped downtown district.
“Now all of those loan dollars have revolved back into our loan fund and the USDA is encouraging cities and EDAs to update their policies to better serve businesses affected by COVID 19,” Sammons said Monday.
With the updates, funds are available in the form of a zero-percent five-year “quick loan” to all Luverne businesses (not just downtown) for a wider list of projects.
In this case there’s no matching grant, but Sammons said it may be useful for some businesses.
“This is a small fix option we can do for the interim, as the USDA has allowed us some flexibility,” she said. “I’ve had a couple of businesses ask about a loan program, so hopefully this fits into their wheelhouse.”
Eligible businesses must be in the city limits, employ 50 or fewer people and bring in less than $1 million in revenue. Funds may be used for any of the following:
•acquisition of land or property.
•construction, remodel, repairs and façade improvements.
•machinery and equipment.

•driveways and parking lots.
•working capital.
More information is on the LEDA website through the city’s web page, cityofluverne.org.
 
Commercial demolition on East Lincoln Street
In other business the LEDA approved a $5,000 commercial demolition request from John Bowron for his property at 308 East Lincoln Street.
It was previously owned by Big Top Tent Rental, which moved to the former Bomgaars building after Bomgaars moved to the former Shopko location.
Bowron reports the east 80 feet of the building is substandard and needs to be demolished.
The walls and support beams are deteriorating and the roof is no longer functional due to water damage and moisture.
After demolition, the site will be filled and graded with proper drainage for parking.
Bowron also owns the adjacent building on the west side but will be improving that structure to use as a vehicle rental storage business.
The property’s estimated market value is $5,000, and annual taxes are $182.