NEW ULM — A further $40,000 was allotted Tuesday to the New Ulm Financial Improvement Authority’s Small Enterprise Incentive Grant, bringing the entire grant quantity to $100,000 for 2022.
The Small Enterprise Incentive grant program began in 2019 is designed to assist new small companies in New Ulm with their startup bills throughout their first yr of operation. The grant reimburses house owners for eligible bills as much as $10,000 per enterprise.
In a typical yr, the EDA allocates $50,000 to this program and funds 5 new small companies, however there was a pointy improve in demand in 2022. Six functions for the grants have been already submitted by January. The EDA agreed to allocate a further $10,000 for the sixth request.
EDA Coordinator Heather Bregel mentioned extra functions for the grant continued to come back in, forcing the creation of a ready listing. There are presently eight companies on the ready listing.
Of the eight companies, 4 have opened already. For a enterprise to be eligible, it should be open for no less than three months.
Bregel beneficial allocating the extra $40,000 for the 4 companies presently open.
A number of several types of companies have obtained grants this yr together with salons, occasion middle, canine kennel and others. Bregel mentioned there was no pattern in the kind of small companies which might be opening.
One of many new companies funded by this extra allotment was a day care middle. The EDA has been working to broaden day care in New Ulm, as there’s a nationwide scarcity.
Board chairman Daniel Braam requested if the ready listing was this lengthy subsequent yr, would all of the funds be spoken for in January.
Bregel confirmed most of subsequent yr’s $50,000 was prone to be earmarked earlier than the yr began.
Board members puzzled why 2022 noticed such a spike in new small companies beginning. Bregel believed the COVID pandemic shutdown gave individuals time to reevaluate what they have been doing, and lots of determined to begin their very own companies.
Braam agreed, saying he heard a number of individuals who discovered extra time throughout the shutdown to pursue completely different enterprise pursuits.
For the reason that program began in 2019, the grant has gone to 19 companies. Each enterprise to obtain the grant remains to be open, which means this system has a 100% success charge.
Board member Jessica Janni made the movement to approve the extra $40,000 allotment, which was unanimously accepted.
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