Wadena businesses get Ag Board loans
The state Agricultural and Economic Development Board (Ag Board) has authorized a loan of $75,000 to help businesses recover from the tornadoes that struck Wadena last month.
The board awarded the interest-free loan to the Initiative Foundation, a Little Falls-based nonprofit group that will distribute the funding to businesses affected by the June 17 tornadoes.
The Ag Board loan, which the foundation must match, is expected to create a $150,000 loan fund. The fund is expected to assist between 10 and 20 businesses damaged by the storm.
"Many businesses were damaged in the Wadena tornadoes and need help getting back on their feet," said Dan McElroy, commissioner of the Minnesota Department and Economic Development (DEED) and chairman of the Ag Board. "This funding is part of our commitment to assisting the recovery efforts in the community."
Under expected terms of the funding, the Initiative Foundation can award loans to storm-damaged businesses in its service area at 3 percent interest for a term of four years, with payments deferred in the first year. Loans to businesses cannot exceed $20,000.
The foundation must repay the loan to the Ag Board within five years.