NEW ULM – The New Ulm Economic Development Authority (EDA) allocated the yearly funds to the Homebuyer Assistance Loan and Small Business Incentive Grant, but held off allocating funds to the other programs until the board can plan the future of the programs.

The EDA has four loan and grant programs, that are replenished at the start of the year. The four programs are Homebuyer Assistance Loan; Small Business Incentive Grant; Get It Ready Single Family Rehab and the Multi-Family Rental Rehab. This replenish all programs to full, the EDA needed to allocate over $245,000 but chose to only allocate $82,896.

Before discussion began on the program funding, EDA President Michelle Markgraf recommended tabling the fund allocation until the board could begin strategic planning. She believed the board needed to discuss each program before committing new funds.

City Manager Chris Dalton believed strategic planning was necessary, but reminded the board these programs were at the start of a new application cycle and some individuals and groups had already began applying for program funds.

“I would recommended putting the money in for 2025 while we go through the strategic planning process,” he said. The board could considering withholding or changing funding in 2026.

Mayor Kathleen Backer agreed the board could make changes to the program later. She did not want to hold programs that were already popular and effective.

The board went through each of the four programs one-by-one, discussing whether it should be tabled.

The Homebuyer Assistance Loan allocates $50,000 each year to provide loans to first time home buyers. Five loans were funded in 2024 for a total of $42,911. One loan was repaid in full in the amount of $7,395. The EDA would need to allocate $32,896.74 to bring the available balance back to $50,000.

Board member Andrea Boettger initially made a motion to table Homebuyer Assistance’s allocation until the EDA could discuss the director of the program. The motion failed for lack of a second.

“This seems like a program that I don’t necessary think we should adjust too much,” Board member Lindsay Henn said.

EDA Director Heather Bregel confirmed the Homebuyer loan was well utilized. She was worried about starting the year without enough funds in the program because the start of the year is popular for making home purchases.

Board member Char Kalk made the motion to allocate the $32,89.74 with a second from Henn. The board approved the motion 3-1 with Markgraf voting against.

The Get It Ready Single Family Rehab program allocates $120,000 each year for home improvements to help with resale. Five loans were funded in 2024 for $117,980. One loan was repaid in full for $8,466.74. The EDA needed to allocate $96,981.17 to bring the available balance back to $120,000 for loans in 2025.

Bregel said this program was almost depleted in 2024. The program does include a low interest loan repayment, but individuals over 65 may wait to pay off the loan until after the home is sold. This allows them to pay off the loan using profits from the sale.

Henn made a motion to table allocating $96,981.17 to the Get It Ready loan program. She believed the program could be improved in terms of the low interest rate. Henn clarified that her motion to table did not mean eliminating the program, but maybe find a way to make it better.

Boettger second the motion to table and was passed bye the board..

The Multi-Family Rental Rehab program allocates $150,000 each year to provide loans to rental property owners. Two loans were funded during 2025 for $100,000. Loan payments have been received in the amount of $34,142.55. The EDA would need to allocate $65,857.45 to bring the available balance back to $150,000 for loans in 2025.

Kalk made a motion to table allocating the $65,857.45 with a second from Henn.

Henn said she thought the Multi-Family Rehab Loan was a great program that was being under utilized. She want the board work on it to figure out how to make it more appealing to the community.

The board approved tabling the Multi-Family Rehab Loan.

The Small Business Incentive Grant program is designed to support new small businesses in New Ulm with their start-up expenses during their first year of operation. The grant reimburses owners for eligible expenses up to $10,000 per business. The program was depleted of funds last year. It required a $50,000 to replenish the fund.

Boettger made the motion to allocate the $50,000. She said the board had already made several adjustment to the grant program over the years. It remains the most popular of their programs. The application window for 2025 funds opened in November and are already spoken for.

Boettger said at this point the Small Business Grant funds were an expectation.

Kalk seconded the motion and it was approved by the board.

Bregel said the Small Business Grant received seven application already. Of those seven, six met the boards priority criteria but only the first five would receive funds in 2025. The remaining two applicants could apply next year, but the businesses would be over a year old and no longer eligible for the funds. However, the board could change the program to allow businesses over a longer time to apply.

Boettger said it is a “small business” grant, not a “new business” grant, which allows some flexibility.

The board is expected to start strategic planning next month to discuss the future of the Get it Ready and Multi-Family loan programs. The board could choose to allocate the remaining $162,838.62 later in the year.