St. Cloud to Offer Forgivable Loans for Business Construction
ST. CLOUD — The city of St. Cloud will use a temporary provision outlined in the 2010 Minnesota Jobs Bill to try to spur economic growth. It allows cities which have cash balances in their tax increment financing districts to offer forgivable loans for certain construction projects or major renovations.
The program is designed to stimulate the economy and grow jobs.
St. Cloud Economic Development Director Cathy Mehelich says their Construction Assistance Program will provide loans of $10,000 or more, but are limited to 25% of construction costs.
The loans are forgivable if the business is maintained by the current owner for five years.
Projects must also be ready to go by July First of this year and cost a minimum of $40,000.
Mehelich says it appears the legislature won’t be extending the program past this year.
Applications will be available on the city’s website and loans will be issued on a first-come first-served basis.
The city could have as much as $1.5-million to use in this program.