NEW ULM — After two businesses bowed out of receiving small business incentive grant funding, New Ulm’s EDA chose to save the $15,000 for next year’s grant cycle.

In January, they approved 14 businesses to receive $7,500 each through the small business incentive grant program. Each business would be granted the funding as soon as they took the necessary steps, including an itemized history of receipts and a business plan meeting.

Of these businesses, two opted not to complete the necessary steps and bowed out instead. With $15,000 in unclaimed money, the EDA had to decide what to do with it. They could either keep the money and use it for next year’s grant cycle, or try to award the grants to two other small businesses.

Board member Andrea Boettger suggested they award the grants since the money has already been budgeted.

“What I’d really like to see is to have the person or the company go through the application process,” she said. “It should be awarded to the first two that come with all of the necessary information and paperwork.”

Board member Michelle Markgraf was the first to suggest rolling the money over to next year, otherwise it had the potential to create a messy situation. Since 14 had already been chosen it made sense the money be kept if two bowed out.

Board member Les Schultz was also in favor of re-awarding the grants to two new businesses. Instead of the first come first serve method suggested by Boettger, Schultz suggested doing it in a manner that would best benefit the city.

“We’ve had some discussion here about priorities and what we should appoint funds to,” he said. “We talked about day care as a high priority. If there are any day cares in [a potential group] of 10 I would elevate them to the top. I don’t know what the categories are, but we should spend some time as a group coming up with what our priorities should be.”

Boettger said they had already planned to do that for the next grant cycle. Schultz suggested creating that criteria now instead of later to potentially give the $15,000 to businesses in needed areas.

City Planner Chris Dalton said the next grant cycle opening is November, only six months away. He said if the EDA elected to try and find two new businesses for grants now it would create a frantic dash. By keeping the money it would allow for more businesses to receive funding when the window opens as normal.

Mayor Kathleen Backer and Board member Nicole Black stood on opposite ends. Backer said they had done what they intended to do and could bank the unused money for next year. Black said if they don’t pay out the money now, businesses who need it now could go elsewhere or close before the cycle opens again.

Boettger asked what the demand was for grant funding at this time. City Economic Development Director Heather Bregel said there were five businesses currently interested. Three were retail, one was service, and the other was a restaurant.

Dalton said businesses are opening up all the time, but that the board had taken a stand to prioritize their grant funding on areas of need.

“If we’re looking at prioritizing what we want to do, there’s no point in giving out the money now,” he said. “You’re just going to be funding whoever comes in. You’re missing an opportunity to prioritize and do strategic economic development versus racking up money and spending it.”

Based on the discussion, Board member Char Kalk made the motion to put the money in reserves to be awarded with the next grant cycle. Schultz seconded the motion. The motion was unanimously approved by the authority.