by CHRIS ROGERS
Winona County’s little-used financial growth mortgage fund will get some extra promotion after the county employed an unbiased contractor final month. County employees members have struggled to dedicate time to the mortgage program since a full-time financial growth place was minimize a number of years in the past.
The Winona County Financial Growth Authority’s (EDA) revolving mortgage fund goals to supply low-interest loans to assist new and increasing native companies. Whereas it has helped help plenty of companies over time — comparable to Hart’s Creamery and Bluff Nation Co-op — the majority of the funds have gone unused lately. As of this winter, the mortgage fund had $1.2 million sitting within the financial institution, and simply three excellent loans totaling $146,000. Pointing to unused funds, EDA Chair Duane Klein mentioned, “I simply suppose loads of companies simply have no idea about it.”
That’s the place Neighborhood and Financial Growth Associates (CEDA) is available in. The nonprofit based mostly in Chatfield, Minn., supplies financial growth employees for quite a few native governments that may’t afford their very own full-time positions, together with Goodview, Lewiston, St. Charles, and Fillmore and Houston counties. Winona County employed CEDA employees to work two days a month serving to to advertise the Winona County EDA.
“It’s solely two days a month, however it is going to be an asset,” mentioned Winona County Planning and Environmental Providers Director Kay Qualley. Qualley defined CEDA helps to replace the EDA’s web site and can do direct outreach to advertise the mortgage program. Describing mailers the county sends to native banks concerning the mortgage program, she defined, “That letter and brochure actually must be adopted up with private contacts, and that hasn’t been doable.”
The right way to promote the county’s mortgage fund — which might solely be used for loans — has been an ongoing dialog on the EDA Board lately, with county employees at occasions suggesting that the citizen EDA Board members volunteer time to assist.
Qualley, whose employees oversees zoning permits, properly permits, septic inspections, recycling and extra, mentioned the county hasn’t been in a position to dedicate time to the EDA past maintaining with present loans and the group’s quarterly conferences. “It’s troublesome to do way more than that with our present assets,” she mentioned.
Nonetheless, this yr, county employees had been in a position to price range $13,790 to rent CEDA two days a month. Qualley and the EDA hope that could possibly be expanded to $27,700 and as soon as every week in subsequent yr’s price range. “We need to do it the credit score that the county deserves and the county’s businesspeople deserve,” Qualley instructed the County Board final month.
The County Board unanimously permitted the CEDA contract. Board member Marcia Ward questioned whether or not two days a month can be sufficient to make a distinction, whereas board member Steve Jacob opposed persevering with the expenditure past this yr. “I don’t need to approve an ever-expanding program,” Jacob mentioned. “I see the necessity for this yr, and I can help a one-year price range enhance to kick-start this, however then to create a burden into the long run, I don’t help that.”
Jacob was referring to a tax burden. Qualley retorted, “With all due respect, the burden was created within the division when the County Board eradicated a $68,000 supervisory place that dealt with all issues financial growth within the county. So when that occurred this system basically crashed.”
Past missing employees time to advertise the mortgage fund, some EDA members mentioned rates of interest might have been holding this system again. The mortgage fund is meant to supply below-market rates of interest: one % below prime. Nonetheless, it has a ground: no decrease than three %. That was below-market when this system was established, however with rates of interest at historic lows lately — some business loans can be found at two % — three isn’t so low.
At a latest assembly, the EDA Board — which incorporates many native bankers — mentioned decreasing rates of interest earlier than finally deciding in opposition to it. “With charges going up, we felt three % was going to be a good fee,” Klein instructed the County Board. “We did take into account taking place to 2 %, however with the Fed wanting like they’re going to extend charges, we felt three % was a great fee.”
“Nonetheless appears excessive to me,” Ward commented. “The feds haven’t gone loopy but.”
Klein mentioned that for the reason that EDA program usually supplies “hole financing” for tasks that aren’t in a position to safe sufficient from conventional financial institution loans alone, the EDA Board thought the marginally greater fee was acceptable.
Extra info on the county’s mortgage program is accessible at tinyurl.com/4abjvu45.