EDA and City Business Incentives
1) EDA Revolving Loan Fund
The City of Caledonia Intermediary Revolving Loan Program provides low-interest loans to businesses and individuals to promote job creation and retention, reduce blight, increase the tax base, and provide needed services in the community.. These loans provide gap financing and may be used for land acquisition, new construction, site improvements, renovations, machinery, and fixtures. Loan amounts are generally available for up to $25,000, but vary depending on the extent of the public purpose served by the project and the economic feasibility of the project.
2) Commercial Rehabilitation Loan (Façade Improvement)
The City offers assistance to commercial property owners in the Downtown Redevelopment Area who want to make physical improvements to the exterior of their building. Up to 33% of the project cost will be a forgivable loan; 33% percent of the project cost will be a 3% low-interest loan, and 34 % of the project cost will be owner’s equity. The Commercial Rehab Loan Program is administered by the Community and Economic Development Associates (CEDA).
3) Tax Abatement
The City of Caledonia offers tax abatements for economic development purposes. A tax abatement allows a property owner to receive a refund on a portion of their yearly property tax for a parcel. The abatement is usually based on the increase in a property’s value from a construction or renovation project. The yearly percentage of the abatement and duration vary based on the amount of the business investment and job creation.
4) Tax Increment Financing
For qualified applicants the City of Caledonia may institute a tax-increment financing district (TIF), in which the city would use the additional property taxes that a new real estate development project generates to assist with the costs of the development.
Other Business Resources
Houston County EDA
Minnesota Employment and Economic Development – Starting a Business
Southern Minnesota Initiative Foundation
Minnesota Department of Public Safety – Alcohol and Gambling Enforcement
Office of the Minnesota Secretary of State - Start a Business
- Southeastern Minnesota Multi-County Housing and Redevelopment Authority
- The Southeastern Minnesota Multi-County HRA, commonly known as SEMMCHRA, carries out the mission to provide affordable, decent, safe and sanitary housing to elderly, disabled and families earning 115% of state median income through: Rental Assistance, Rental and single-family home rehabilitation, Low interest mortgage loans and down-payment programs, Family self-sufficiency program, and Single and multi-family construction.
- Southern Minnesota Initiative Foundation
- SMIF is a regional development and philanthropic organization that fosters economic and community vitality in 20 counties of southern Minnesota through a culture of collaboration and partnership.
- Houston County Investments
- Minnesota Housing Assistance
- Rehabilitation Loan/Emergency and Accessibility Loan Program
- The rehabilitation Loan/Emergency and Accessibility Loan Programs assist low income homeowners in financing basic home improvements that directly affect the safety, habitability, energy efficiency or accessibility of their homes. The Emergency and Accessibility Loan Program is available for home improvements addressing emergency conditions of the home or accessibility needs for a disabled household resident, subject to prior approval by Minnesota Housing.
- Semcac Housing Rehab Programs
- Semcac offers several programs to assist homeowners, rental property owners, and/or commercial property owners to fix up their home or property.