Local support to help your business grow.
When you locate your business in Douglas County, you have access to financing and grants that can help you get ahead. The Alexandria Area Economic Development Commission has provided hundreds of millions of dollars in incentives to other businesses in town and we're here to help you, too.
Our team will walk you through available options and help determine which programs best fit your project before you apply.
Funding & Incentive Programs
Revolving loan funds (RLFs)
AAEDC manages revolving loan funds to support local businesses with below-market rates and flexible terms. As existing loans are repaid, funds are reinvested to assist new borrowers—helping more businesses start, expand, and thrive in the Alexandria area.
Tax Increment Financing (TIF)
New developments, redevelopments, or public-assisted housing developments may be eligible for a TIF through our local government. This financing is paid for by the increased property taxes that will be generated from your project.
Tax Abatement
Similar to a TIF, the Tax Abatement program can be used to finance your project, based on the increase in property taxes that will be generated from your new development or redevelopment. To qualify for Tax Abatement, your project must meet a number of public-interest benefits established by Minnesota state statutes.
Childcare funding assistance
To strengthen our community’s childcare network, various state programs offer grants and scholarships for new or expanding providers in Douglas County.
City of alexandria loans
The City offers additional revolving loan funds designed to assist businesses with projects such as:
- Commercial Loans: Building rehabilitation, demolition, and public facility improvements
- Industrial Loans: Land, buildings, machinery, equipment, and working capital
- Equipment Loans: For businesses in industrial zoning districts (I-1, I-2, I-B) purchasing qualifying equipment
Industrial Revenue Bonds (IRBs)
The city of Alexandria can use its bonding authority to help you raise revenue for a project. Once raised, that money is passed through to your business, and you are then responsible for repayment. IRBs are tax-exempt, which gives you a lower interest rate.
This type of financing is generally best for larger projects because the up-front expenses incurred with IRBs require a bonding amount large enough to make the reduced interest rate and other benefits attractive.
Why this manufacturer relocated to Alex — and how they landed $1 million in funding
Why this manufacturer relocated to Alex — and how they landed $1 million in funding
The aaedc's impact since 2020:
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Businesses Supported$0
Capital Investmentin our Communities
$0
Provided through Loans and Grants0
Jobs Created
looking for incentives?
Connect with us first—we’ll guide you through the process and match you with the most effective loan or grant opportunities.