A revolving loan fund of nearly $150,000 has been set up in Carlton County to provide low-interest loans to small-business owners.
The fund consists of a $99,000 grant from the U.S. Department of Agriculture and $50,000 in matching funds from the county. The fund will be used for loans to small local businesses that previously have used other USDA loans.
It's the second $99,000 grant Carlton County has received from the department's Rural Business Enterprise Grant program. The county also previously received a $196,000 Intermediary Relending Program loan from the USDA.
Such grants for business loans are only available to communities with populations of less than 50,000. If a small business in Carlton County can't get bank financing, it might be able to access the revolving loan fund overseen by the county, said Adam Czech of USDA Rural Development.
"We all know nobody can do it alone anymore; you have to have partners," said Colleen Landkamer, Rural Development's state director.
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Landkamer was in Carlton last week to announce the grant. She said the loans help small businesses succeed and grow, which results in more jobs and economic development in rural communities.
As each low-interest loan is repaid, the county will be able to make additional loans to other businesses, which keeps the fund going.
The USDA also helps rural businesses get loans from banks by guaranteeing the loans.
