Gap financing OK'd for area firms

The North Central Economic Development Association and the Region Five Development Commission announced gap financing was recently approved by the NCEDA Board of Directors for three businesses in the region.

In Wadena County, $100,000 in gap financing was approved which leveraged more than $1.5 million dollars on a project that provided the financing necessary to guaranty the viability of the project. Fourteen new jobs were created.

In Cass County, $25,000 in gap financing was approved on a $134,000 project. Two jobs were created and 65 jobs were retained.

In Morrison County, $50,000 was approved on a $3.2 million package, 45 jobs were retained.

NCEDA oversees a loan pool that uses funds provide by a grant from the Federal Economic Development Administration to assist with business growth and vitality in the region.

Funding is available to qualified businesses in Cass, Crow Wing, Morrison, Todd and Wadena counties. The grant, first obtained in 1987, provides money to assist area businesses that create or retain jobs. This revolving pool of money is continuously lent out to area businesses and as it is paid back provides funding for other business projects in the region.

Any entrepreneur interested in obtaining information on this financing opportunity should contact Lee Miller, economic development director at (218) 894-3233 or lmiller@regionfive.org. Information is also available on the Web site at www.regionfive.org.