Since 2002, the AAEDC has delivered hundreds of millions of dollars of incentives to area employers. By choosing to locate in Douglas County, businesses can access the following incentive programs that are designed to support successful business growth.
The future growth and long-term prosperity of Douglas County’s economy are tied to securing new job opportunities for our community. Our office works with State, County and City government to impact our economic growth. Our partnerships are essential to our collective efforts to strengthen our economy and create job opportunities for our residents.
For further information on these programs, please see our:
AAEDC Revolving Loan Funds
Revolving loan funds (RLF’s) can provide businesses with direct loans, loan guarantees, and other financial assistance. As the Fund receives the principal and interest payments from outstanding loans, the money is made available to another borrower. RLF’s are designed to alleviate the high cost and short supply of capital by providing flexible loan terms. RLF’s usually provide lower rates, longer terms, and reduce the overall risk of the loan.
Contact the AAEDC for more loan information >>
Micro Loan Fund
This is a direct loan. Loan funds may be used for all costs demonstrated as essential for the project, including working capital, inventory, machinery and equipment, building and leasehold improvements. Eligible applicants include any for-profit small business located in Douglas County, Minnesota.
Click HERE for Micro Loan Guidelines and Application
Tax Increment Financing
Tax Increment Financing is a method local governments use to pay for the costs of qualifying improvements necessary to create new development, redevelopment, or public assisted housing. The financing of the qualifying improvements is paid from the increased property taxes generated from new development, redevelopment or housing development that would not have occurred without such assistance.
Click HERE for TIF Application & Guidelines >>
Tax Abatement is a municipal financing program that uses the increase in property taxes generated from new development and redevelopment to pay for qualifying improvements. To qualify for Tax Abatement, a project must meet a number of public interest benefits established by Minnesota State Statutes. Each local unit of government, i.e. city, town, county, and school district can grant a tax abatement for economic development purposes.
Click HERE for Abatement Application & Guidelines >>
Industrial Revenue Bonds (IRB’S):
The City of Alexandria can use its bonding authority to help companies raise revenue for a project, and the money is passed through to a business which is responsible for repayment. Industrial revenue bonds are tax-exempt, and therefore, provide the borrower with the money at a lower interest rate. This type of financing is generally for larger projects because the up-front expenses incurred with this financing process require a bonding amount large enough to make the reduced interest rate and other benefits attractive.
Contact the AAEDC for more information >>
City of Alexandria Revolving Loan Funds
The City of Alexandria has three types of revolving loan funding:
- Commercial: Eligibility – Acquisition for demolition, building rehabilitation improvements, demolition of non-functional buildings and public facilities.
- Industrial: Eligibility – Land, building, machinery, equipment, working capital, relocation, demolition and public facilities.
- Equipment: Eligibility – Projects must be located within city limits and open to businesses located in zoning districts I-1 (Light Industrial), I-2 (Heavy Industrial), or I-B (Industrial Business)