Press Release

U.S. Department of Commerce Invests $23 Million in CARES Act Funding to Capitalize Revolving Loan Funds to Help Small Businesses Across Minnesota Respond to Coronavirus

WASHINGTON – Today, U.S. Secretary of Commerce Wilbur Ross announced that the Department’s Economic Development Administration (EDA) is awarding $23 million in CARES Act Recovery Assistance grants to capitalize and administer Revolving Loan Funds (RLFs) that will provide critical gap financing to small businesses and entrepreneurs adversely affected by the coronavirus pandemic across Minnesota.

“President Trump is working diligently every day to support our nation’s economy following the impacts of COVID-19 through the CARES Act,” said Secretary of Commerce Wilbur Ross. “These investments will provide small businesses across Minnesota with the necessary capital to rebound from the coronavirus pandemic and, in turn, create a stronger and more resilient state economy for the future.”

“These investments come at a crucial time to help Minnesota’s and our nation’s economy come roaring back and provide hard-working Americans with new opportunities,” said Dana Gartzke, Performing the Delegated Duties of the Assistant Secretary of Commerce for Economic Development. “Small businesses are the lifeblood of our communities, and EDA is pleased to invest these CARES Act funds so that Minnesota businesses have access to capital to respond to and recover from the coronavirus pandemic.”

The EDA investments announced today are:

• Arrowhead Regional Development Commission, Duluth, Minnesota, will receive a $4.2 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF to provide loans to new and existing local business impacted by the coronavirus pandemic in Aitkin, Carlton, Cook, Itasca, Koochiching, Lake, and St. Louis counties.
• Headwaters Regional Development Commission, Bemidji, Minnesota, will receive a $3.4 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF to provide loans to coronavirus-impacted businesses in Beltrami, Clearwater, Hubbard, Lake of the Woods, and Mahnomen counties, including the Red Lake Reservation and parts of the Leech Lake and White Earth Reservations.
• Northwest Regional Development Commission, Warren, Minnesota, will receive a $3.4 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide coronavirus-impacted businesses in Kittson, Roseau, Marshall, Pennington, Red Lake, Polk, and Norman counties with loans to help them respond to the pandemic.
• Upper Minnesota Valley Regional Development Commission, Appleton, Minnesota, will receive a $1.9 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF to provide loans to coronavirus-impacted small businesses in Big Stone, Chippewa, Lac qui Parle, Swift, and Yellow Medicine counties.
• Southern Minnesota Initiative Foundation, Owatonna, Minnesota, will receive a $1.6 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide loans to coronavirus-impacted businesses in Dodge, Fillmore, Freeborn, Goodhue, Houston, Mower, Rice, Steele, Wabasha, and Winona counties.
• Southwest Regional Development Commission, Slayton, Minnesota, will receive a $1.6 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide loans to coronavirus-impacted businesses in Cottonwood, Jackson, Lincoln, Lyon, Murray, Nobles, Pipestone, Redwood, and Rock counties.
• Region Five Development Commission, Staples, Minnesota, will receive a $1.6 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide loans to coronavirus-impacted businesses in Crow Wing, Cass, Morrison, Todd, and Wadena counties.
• West Central Minnesota Initiative Fund, Fergus Falls, Minnesota, will receive a $1.5 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide coronavirus-impacted businesses in Becker, Clay, Douglas, Grant, Otter Tail, Pope, Stevens, Traverse, and Wilkin counties with loans to respond to the pandemic.
• Region Nine Development Commission, Mankato, Minnesota, will receive a $1.3 million EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF to provide loans to coronavirus-impacted businesses in Brown, Nicollet, Waseca, Watonwan, Blue Earth, Faribault, Martin, Sibley, and Le Sueur counties.
• Mid-Minnesota Development Commission, Wilmar, Minnesota, will receive a $957,000 EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF to provide loans to coronavirus-impacted businesses located in Kandiyohi, McLeod, Meeker, and Renville counties.
• The city of Fairmont, Minnesota, will receive a $671,000 EDA CARES Act Recovery Assistance grant to establish and administer an RLF to provide lending capital to small businesses impacted by the coronavirus pandemic in Martin County.
• East Central Regional Development Commission, Mora, Minnesota, will receive a $550,000 EDA CARES Act Recovery Assistance grant to capitalize and administer an RLF that will provide coronavirus-impacted businesses in Pine, Isanti, Chisago, Kanabec, and Mille Lacs counties with loans to help them respond to the pandemic.

These current EDA RLF grantees are some of the more than 850 existing, high-performing EDA RLF, Economic Development District, University Center, and Tribal grant recipients invited to apply for supplemental funding under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CARES Act, signed into law by President Donald J. Trump, provides EDA with $1.5 billion for economic development assistance programs to help communities prevent, prepare for, and respond to the coronavirus pandemic.

On May 7, Secretary Ross announced that EDA is accepting applications for CARES Act Recovery Assistance funding opportunities.

EDA CARES Act Recovery Assistance, which is being administered under the authority of the bureau’s flexible Economic Adjustment Assistance (EAA) (PDF) program, provides a wide-range of financial assistance to eligible communities and regions as they respond to and recover from the impacts of the coronavirus pandemic. For complete information, please visit our recently updated EDA CARES Act Recovery Assistance page.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA makes investments in economically distressed communities in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.