New loan shifts economic focus to current business owners

Shifting the focus of local economic development from recruiting new, large industries to Kimball, the local Economic Development Committee is currently focused on assisting established local businesses make needed improvements.

“Existing businesses in rural towns have a stake in the community and focusing on helping keep your existing businesses in town is less costly than recruiting and attracting new industry,” Special Projects Coordinator Amy Sapp said. “Although a new industry would be wonderful, the fact of the matter is, it usually takes significant tax incentives and substantial infrastructural development costs that Kimball doesn’t have right now.”

The committee, including Sapp, met with Kimball City Council recently to discuss a $5,000 business infrastructure loan for existing and incoming businesses that will be forgiven when 50 percent of the loan is paid off, if all requirements are met.

“The loan, ideally, will cover infrastructure needed on the inside of the building. Items would include updated electrical, updated plumbing (ADA bathrooms), energy efficient items like LED lighting, or new HVAC,” Sapp said. “We are still working on an itemized list of eligible items and, just like the Business Facade Improvement Grant, it will most likely morph into different eligibilities and funding if businesses find the program helpful and successful.”

The committee is concerned that if assistance is unavailable, business owners will be unable to afford to keep their businesses open. Additionally, how can new businesses be encouraged to open in Kimball if renovations are needed just to open their doors? If no help is in sight, they simply will not be able to own and operate a business locally.

“On the Business Retention Questionnaire, a lot of what we hear is the condition of the building, and yes we have the programs to improve the outside of the buildings, but how do we help our local businesses that are already struggling with the inside of the building?”

The loan would offer local business owners money up front to begin needed repairs and renovations but has the same 50/50 benefit as the Business Facade Improvement Grant, which was previously called the Main Street Design Improvement Grant.

Interest rates for this loan cannot drop below four percent annually or half of the prime rate established on the date of loan approval, according to Sapp.

“In discussions with the State Economic Development staff, interest rates differ throughout the state based on what was voted in,” she said. “I originally asked the attorney’s if we could change that rate to get more people interested in the funding but they said the interest rate can only be changed by going back to the vote of the people.”

Council member Kim Baliman said, “We can start with what the committee recommends and amend it as we go and as the program goes. Until we try it we don’t know exactly what they need.”

Council will consider the final proposal at the next council meeting, scheduled for August 15.

“Spreading the word that we have incentives available for those that are new to town, future entrepreneurs, existing businesses, and those looking to relocate business here would be extremely helpful,” Sapp added. “The Economic Development Committee is focused on stabilizing our community and watching it grow over the next few years.”