FEDA approves five loans
FAIRMONT — The Fairmont Economic Development Authority approved five loans Wednesday evening, four of which were directly impacted by COVID and one MicroLoan request.
Live Fit Sport and Wellness Center applied for a $25,000, 0 percent interest loan to assist with the offset of revenue and help pay the expenses as a result of COVID. The business shut down operations down in 2020 due to the governor’s executive orders. Live Fit is in their first year of operation. Collateral will include a blanket UCC filing specifically listing two treadmills and personal guarantees from owners Alex Schliesmann and Jennifer Moeller.
The Blazer Bar and Grill applied for a $25,000, 0 percent interest rate loan to offset the loss of revenue and help pay for expenses. Collateral will be a property owner Mark Atkinson owns located at 931 Albion Avenue along with a personal guarantee from Atkinson.
Bowlmor Lanes applied for a $25,000, 0 percent interest loan to assist with the offset of loss of revenue and help pay expenses. Bowlmore Lanes faced a number of shutdowns and restrictions as a result of COVID-19 and the governor’s executive orders. Required collateral will include one of the golf simulators and guaranty from owner Doug Pederson.
Fairmont Awards Mfg applied for a $25,000, 0 percent interest loan to assist payroll, mortgage, utilities and furnace updates. According to the agenda notes, the business was negatively impacted by the results of schools closing which lead to the reduced need for trophy and ribbons for sports, lower uniform sales, and the County Fair cancellation impacted trophy and ribbon sells. Required collateral will be a UCC filing on all machinery, equipment and inventory and will specifically state the embroidery machine and engraver with a personal guarantee from owner Kim White.
Denise Rouse of Giddy Up Boutique for a loan from FEDA’s Micro Loan Program. This loan program is offered to help business owners with small loans up to $10,000 with signage, storefronts, general fix up, code work, minor building renovations, etc. This program does not require job creation, and staff does the review and recommendation. A dollar-for-dollar match is required and FEDA provides loans at 3 percent interest.
Rouse stated that she had a problem with the furnace and currently does not have an operational furnace/boiler. A bid was submitted with the application for $14,829. The FEDA staff reviewed the application and received an approved loan for up to 50 percent of the total project cost of the furnace/boiler replacement with a max of $10,000, and an interest rate of 3 percent for seven years. Required collateral will include machinery, equipment and a personal guaranty from Rouse.
Linsey Preuss, Fairmont economic development coordinator, reported responses to the Fairmont Area Life Resident Recruitment Campaign and the downtown revitalization effort.
Described by Preuss as going really well the Fairmont Area Life Resident Recruitment Campaign ad saw 292,524 impressions, 253 clicks, 2,702 engagements, and 258 visits since last reported. The goal of this is to get families to move from the Twin Cities area and have them relocate to Fairmont. So far two families have relocated from the Minneapolis Area.
“I would consider that a huge win, if we got one family to move from that area to Fairmont,” Preuss said. “I’m going for quality over quantity.”
The downtown revitalization effort generated a lot of interest. Preuss reported that her and others went door to door to generate interest, but also show they had interest in their community. A lottery will be generated and eight projects will be picked to be revitalized.
“That’s exciting, we’re going to see some change in downtown,” Preuss said. “Which is awesome.”
The next FEDA meeting will be on Feb. 8 at 4:30 p.m.