City of Pelican Rapids 



Key resources

  • 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

  1. What is my expected level of investment for my project in Pelican Rapids?
  2. Will this project create new jobs or have some other economic benefit which could be eligible for business incentives?

Key terminology         

  1. 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
  1. 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.

Development Resources:

  1. Local
  1. Regional
    1. West Central Initiative Foundation business loans gap financing: Finance assistance for targeted industries including value-added agriculture, natural resource-based manufacturers and industries utilizing technology in manufacturing processes. Financing up to $250,000.
  1. State and National
    1. Veteran Entrepreneur Portal: Resources about financing and business development for veterans. 
    2. 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 
    3. Greater MN Job Expansion Fund: The Greater Minnesota Job Expansion Program provides tax benefits to businesses located in Greater Minnesota that increase employment. 
    4. 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.
    5. 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.
    6. 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:

  1. 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.
  2. Pelican Rapids Business Retention and Expansion report: Based on 2016 interviews with 45 local businesses, this report identifies the views of Pelican Rapids from the point of view of its local business community
  3. Starting and Managing a Business: This collection of resources from the Small Business Administration (SBA) is a great place to start for any aspiring entrepreneur. Topics include:
    1. Is Entrepreneurship For You?
    2. 10 Steps to Starting a Business
    3. 20 Questions Before Starting
    4. Understanding Your Market
    5. Business Data and Statistics
    6. Business Types
    7. Finding a Mentor or Counselor
  4. Small Business Development Center (SBDC): Our regional SBDC at Concordia College in Moorhead can assist you directly with low or no-cost business planning and counseling.  Contact either or 218-299-3037. 
Official Website of the City Of Pelican Rapids, Minnesota