Progress Plus will work with the economic development staff of both communities to analyze project requirements including: planning, zoning, finance, and marketing. Depending on the nature of the project, the following business incentives may be available:
Industrial Development Revenue Bonds (IRBs) – Fixed rate, long term, equal or below market rate financing to help industrial businesses with:
- new project land acquisition and construction
- additions to existing facilities
- purchase and renovation of an existing structure
- purchase of production equipment
504 Loan Program – Long term, fixed rate financing (generally 1 to 2 points below market rates) for up to 90 percent of the necessary capital to help industrial business with:
- purchase of land and buildings
- rehabilitation and construction
- leasehold improvements
- purchase of machinery and equipment
SBA 7 (a) Loan Program – Assist manufacturing firms with fewer than 250 employees and wholesale firms with annual sales of less than $9.5 million in obtaining loans from banks and other lending institutions by guaranteeing 90 percent of the principal and interest; funds can be used for:
- working capital and inventory
- machinery and equipment
- purchase of land and buildings
- land acquisition
- renovation and construction of facilities
Tax Increment Financing – Available throughout both communities in various districts.
Revolving Loan Fund – The South St. Paul EDA administers a revolving loan fund designed to aid expanding companies. These proceeds may be used for leasehold improvement, machinery and equipment or construction of new facilities. The maximum loan amount is $50,000 with preference given to firms that demonstrate strong private investment and job creation. Terms and rates are negotiable and designed to meet the needs of the company.
Commercial Rehabilitation Loan – The South St. Paul EDA operates a loan program designed to encourage the rehabilitation of existing facilities. Under this program, business/developers may borrow up to $15,000 to upgrade/redevelop structures. This program requires a 1:1 match of private funds.
South St. Paul Futures – A private, for-profit corporation that will consider loaning to qualifying firms.
Professional/Technical Assistance – The South St. Paul EDA will provide professional and technical assistance to any firm that demonstrates a willingness and ability to undertake a significant development project within the community. Trained staff and consultants will work with a business to analyze project requirements including planning, zoning, building needs, legal, finance, marketing and related issues. As a part of this service the EDA may work with the client to develop appropriate applications/requests to state or federal agencies.
Project Gemini- Manufacturing or wholesale trade businesses that expand or locate operations within a certain portion of the South St. Paul industrial area may be eligible to receive reduced electric rates for five years through Project Gemini. The discount is based upon the demand charge according to the following schedule:
Business Incentive and Sustainability Rider (BIS)- Available to new and existing commercial and industrial customers with a new or additional load of 350kW or greater. All industries within Xcel Energy’s service territory qualify. Discounts apply to the customer’s regular demand-metered rate schedule in years one to five and resuming normalcy in year six. The discount applies as follows: