Pelican Rapids Area Economic Development Commission (PRAEDC): This non-profit private corporation administers a local loan pool and works closely with federal, state, and local governments to bring together resources to assist your business and spur economic growth.
Pelican Rapids EDA and City of Pelican Rapids: The Pelican Rapids Mayor and City Council serve as the governing body of the Pelican Rapids Economic Development Authority (EDA) which has broad powers to provide encouragement and financial support of economic development and redevelopment in Pelican Rapids.
Questions to consider about business incentives
What is my expected level of investment for my project in Pelican Rapids?
Will this project create new jobs or have some other economic benefit which could be eligible for business incentives?
Tax Abatement: Qualifying taxes are “abated” (or more like “rebated”) to a qualified business for a set period of years (up to 15-20 years). Would need to go before each taxing district separately: the city, the county and the school district for approval. Contact: City Administrator
Tax Increment Financing (TIF): Qualifying taxes are “captured” and used to write down the costs of the project. Some of the eligible activities include land, site improvements, and utilities. Would need to go before the city for approval.
Reduced or free utilities: The City of Pelican Rapids operates its own sewer and water systems and the costs of these utilities can be decreased or eliminated for a period of time for new development, including residential.
Minnesota Investment Fund: Low-interest loan program from the state, which grants money to the city, which in turn lends money to the business at a negotiated rate, typically 1% - 4%. Dollar amount of loan is based on number of jobs created at certain wage thresholds, up to $500,000
Greater MN Job Expansion Fund: The Greater Minnesota Job Expansion Program provides tax benefits to businesses located in Greater Minnesota that increase employment.
Minnesota Angel Tax Credit: Provides a 25-percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields.
MN Job Creation Fund: The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets.
USDA Business Loans and Grants: The USDA has a variety of loan and grant programs available to businesses, many specific to particular industries. For example, the Rural Business Intermediary Relending Program has up to $250,000 available at a negotiated interest rate between 1-4%. Can be used for land, building, equipment, working capital, feasibility studies, interest, and fees for professional services.
Business Management Resources:
Pelican Rapids Market Area Profile: A 2016 study by University of Minnesota Extension which profiles the customer base and identifies business opportunities of the Pelican Rapids trade area.