From the Cook County Grand Marais EDA - February 26, 2021

After receiving 100 applications in the recently ended Minnesota Business Relief  Grant Program and only being able to fund 42,  the Cook County Grand Marais EDA has modified the Taconite Area Business Relief Loan program to include a process that can result in 50% loan forgiveness.

Working with  Iron Range Resources and Rehabilitation, the funding source for the  loan program, EDA Executive Director Mary Somnis  discussed the current  business need and gained IRRR support to modify the loan.

Beginning on February 26, 2021  the EDA will offer two loan products at zero interest, a $7500 loan to be used toward working capital and a $15,000 loan that can be used for capital improvements. Quarterly debt service payments on both loans will begin in October 2021. To apply businesses  must fill out an on-line application and provide  a personal financial statement. If approved, a personal guaranty will also be required.

Forgiveness eligibility will be determined in the summer of 2023.  To qualify the business must have submitted quarterly financial statement to the EDA  and made quarterly  loan payments.

“Rather than add more debt, the EDA wants to provide businesses with an opportunity to use this funding to remain current with exiting obligations or to prepare for the future as COVID wanes and  our busy summer season approaches” said Scott Harrison, EDA treasurer.  

The EDA currently has  $215,000 available on a first come first served basis. Application must be received no later than March 15, 2021. Loan guidelines and application are available on the EDA website at www.prosperitynorth.com. 

Questions can be directed to Pat Campanaro, Small Business Development Center consultant at [email protected]  or 651-336-2964.