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NEW ULM -- The New Ulm Economic Development Authority (EDA) approved a $50,000 loan to M&K Forestry & Land Management Services, Monday during a special meeting.
This loan would be used for M&K to purchase equipment needed for business operations.
The EDA previously tabled a decision on the loan during their regular meeting on April 12. At that time the board had concerns about the number of employees being hired. The only jobs being created by the business were the two owners, Mike Vetter and Kris Mathiowetz. In addition, the board wanted the owners to present a business plan to the Small Business Development Center (SBDC).
The board members decided to table the decision until further information was available.
Vetter and Mathiowetz were able to attend the special meeting to address any concerns.
Board chair Daniel Braam asked if they had revenue projections broken down based on contracts.
Vetter said they had revenue broken down by the hours they expected to work per year, minus the expected expenses.
Vetter said they had contacted the SBDC to set up a meeting, but had not heard back from SBDC in two months. Instead, they used a different company to help create a business plan. Vetter said project contracts will vary in cost based on acres, amount of trees and hours worked.
M&K Forestry intends to travel where their work allows. This includes FEMA contracts. For the first year, they will likely stay in Minnesota for insurance purposes, but will likely travel out of state as jobs become available. The company has six different jobs lined up at this time.
Mathiowetz said they planned to operate out of New Ulm. This is where their family is and where they want to grow. He said other people are interested in working for them, but they need to build up the business and get work before hiring others.
M&K is also willing to meet with SBDC for further assistance.
Board member Susan Fix made the motion to approve the loan, with a second from Andrea Boettger, and it was approved by the board.