FAIRMONT– On Monday the Fairmont Economic Development Authority (FEDA) gave the go ahead to approve several forgivable loans for area businesses.

Fairmont’s Economic Development Coordinator, Ned Koppen, said the loan committee had met and approved five more applications for FEDA’s new facade loan program. The businesses are Channel Inn, Bowlmor Lanes, BM Properties, Fairmont Veterinary Clinic and Kingdom Properties of MN, which has the Lighthouse on Downtown Plaza.

The loan will cover up to $5,000 of 50 percent of the project. Recipients will pay the interest only on the loan, which will have a five year term. If the business proves successful, each year FEDA will forgive 20 percent of the principal, with 100 percent of the loan forgiven after five years.

The board previously approved four loans for other area businesses at its April meeting.

Board Member Sarah Gerhard asked how many funds are left in the program. Koppen said there was about $5,000 left, but one previously approved loan may not be used, which would bring their total to about $7,500.

He said they have several other applications out there and the businesses have been told it’s first come, first serve.

“It’s been really successful so far,” said Koppen.

The board approved of the loans.

Moving to other matters, the board received an update on White Tail Ridge. Koppen said while they had originally anticipated breaking ground this spring, the Southwest Minnesota Housing Partnership has been having a hard time finding a contractor.

Last fall, the board accepted an agreement to work with the non-profit, which focuses on affordable housing. The proposal was to turn eight lots into 10 and build five twin homes.

On Monday Koppen said, “the last time I talked to them last week, they had a contractor.”

He added that they should be breaking ground and getting started on construction soon.