The Algona Area Economic Development Corporation (AAEDC) launched the Algona Advantage Program this fall, a forgivable loan program created to give new and expanding businesses in the community a boost.
“We know that there are several advantages to opening a business in Algona, from the higher-than-average retail traffic for a town our size to the number of retail promotions that are coordinated by our Chamber of Commerce. Our hope is that this program provides that final push a business owner needs to take that step towards opening a new store or expanding their current business,” said John Bilsten, president of AAEDC and general manager of Algona Municipal Utilities.
Through the Algona Advantage Program, a forgivable loan of up to $5,000 for a term of 4 years is available with 0% interest to retail or service businesses relocating to or expanding within the City of Algona. Each year 25% of the loan will be forgiven on the anniversary of the original date of the loan. A limited number of forgivable loans are available on a first come, first serve basis. Applications are accepted on a rolling basis and will be evaluated by the AAEDC board for approval.
Applicants must meet the general requirements of the program. The business must diversify or enhance the local business economy and plan to be open to the public at least 40 hours per week. Additional requirements can be found in the program guidelines.
Funds through the Algona Advantage Program may be used for any of the following business expenses:
- Construction
- Land/building acquisition
- Renovation and repair of buildings or appurtenant structures
- Site development
- Engineering, planning and design costs
- Materials
- Equipment and supplies
- Marketing
- Legal fees
- Website/e-commerce creation
- Business Succession
- Inventory
- Other expenses as approved by AAEDC
“Algona has a strong downtown and great shopping all around town. This program is meant to keep that momentum going. We have some empty retail spaces that could be filled by a new business, and we want to provide every advantage possible to make that happen,” said Barb Smith, Deputy City Administrator and Community Development Director for the City of Algona.
The application and program guidelines for the Algona Advantage program are available at City Hall, as well as on the AAEDC website. To learn more about the Algona Advantage Program and other local business incentives contact Barb Smith at 515-295-2411.