IRP Loan Fund Policy

 

General:

 

  1. Eligible Applicants:  All retailers, wholesalers, manufacturers, and service businesses would be eligible for the assistance program.  Generally, businesses falling within the SBA's definition of a small business would be eligible for assistance.
  2. Ineligible Applicants:  Any use, which the Economic Development Authority board and the City Council in its sole discretion, determines as not being beneficial to the interest of the City of Fosston, will be ineligible for assistance under this program.
  3. Eligible Locations:  All property zoned locations for businesses within the municipal boundaries of the City of Fosston would be eligible.
  4. Eligible Activities:  Purchase of land or building, construction of new facilities, expansion of existing business, purchase of equipment, inventory, working capital, rehabilitation of existing building or other type of financial assistance will be considered as eligible projects for assistance.  The funds are not to be used for refinancing, interim financing or speculative purchases.
  5. Program Priority:  The funds available for loans under this program will be utilized on a first come, first serve basis, provided, however, that first priority will be given to businesses locating in the Industrial Park or assistance involving a business which is utilizing vacant business space in the City of Fosston.  The funds will provide gap financing with other private (bank and personal) and/or other public funds to complete the project.
  6. Approval Authority:  The items above are guidelines to be followed by the F.E.D.A. board and the City Council in administering the IRP Revolving Loan Fund, from which the R.E.D.A. board and City Council may deviate when such course of action is deemed necessary, prudent, and to be in the best interest of the City of Fosston.  The City Council will make all final decisions with regard to approval or disapproval of applications for funds under this program.  Any changes to this policy must be approved by F.E.D.A. and City Council.

For more information or for a loan application, call City Administrator, Cassie Heide at 218-435-1959, or email cassie@fosston.com