TOWER— The Tower Economic Development Authority has money to lend to businesses in the city.
The funds will be available for a wide range of uses by businesses, including business acquisition and working capital, making the program different from the city’s longstanding commercial rehabilitation or storefront program, which was largely limited to facility improvements.
Once the loan funds are distributed and repaid, they will become part of a revolving loan program managed by TEDA.
The low-interest loans are funded through the Department of Iron Range Resources and Rehabilitation’s COVID-19 community relief program. The IRRR issued a total of $2 million in grant funds to area cities and economic development authorities for the program. TEDA currently has about $70,000 available for led under the program. Funds must be lent out by June 30, 2021.
“We’re encouraging businesses in Tower to contact TEDA as soon as possible if they need assistance as they address the uncertainties posed by the current pandemic,” said TEDA executive director Marshall Helmberger. “If TEDA hasn’t lent these funds out by next June, we risk losing the money. We’d rather see the funds help our local businesses sustain themselves during these challenging times.”
The program will require a 1:3 match from participating business, meaning that the business will need to provide at least one dollar in private investment for every three dollars in loan funding.
Loan guidelines and an application form are available on TEDA’s new website, at cityoftower.com/teda. The guidelines and loan applications are accessible under the Incentives portion of the website.