EDA awards grant to Minnesota Canine Club
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NEW ULM -- The Minnesota Canine Club is the latest recipient of the New Ulm Economic Development Authority's (EDA) $10,000 small business incentive grant.
The Minnesota Canine Club is located at 520 N. 20th Street. Owner Jon Hansen began the business May 2. The business offers dog boarding, dog daycare, and training.
Hansen said there was a demand for dog boarding and daycare in New Ulm. He said during a busy holiday season he's had as many as 30 dogs boarded for the night.
During the day, he watches dogs for owners who are at work. Dog daycare is usually for younger dogs that cannot be left at home alone. Some older dogs attend the daycare to help with socializing.
Hansen said he intends to use the $10,000 grant to expand his space to offer further dog training.
The Small Business Incentive grant program started in 2019 is designed to support new small businesses in New Ulm with their startup expenses during their first year of operation. The grant reimburses owners for eligible expenses of up to $10,000 per business.
In a typical year, the EDA allocates $50,000 to this program and funds five new small businesses, but there has been a sharp increase in demand in 2022.
The EDA agreed to fund additional five grants in 2022 for a total of ten grants. EDA Coordinator Heather Bregel was able to fund additional grants this year due to a recent lawsuit in which the EDA was awarded damages.
The grant given to Minnesota Canine Club was the ninth grant paid out this year. Since the program began in 2019, the EDA has paid out 22 grants to new businesses. Of those 22 businesses awarded grants, one has closed with another potentially closing at the end of the month.
Mystical Dreamz opened in downtown New Ulm last July and was awarded a small business grant in October. The business recently announce it is closing at the end of November; though this could be a temporary closure.
Bregel said staff is working with the Mystical Dreamz owner to try to keep the business operating in New Ulm. The announcement that Mystic Dreamz might close only a month after receiving the grant has raised questions about the program and how it is operating.
To be eligible for the small business incentive grant, the business must have 10 or fewer full-time employees and have a New Ulm address. The business must be open for three months and must have accumulated $10,000 in business expenses.
Bregel said the grant is a reimbursement. Any business must submit proof of $10,000 in expenses before receiving the grant.
Businesses operating for more than one year are not eligible. Home-operated businesses are not eligible except for daycare businesses.
Funding is subject to availability. The application is first come, first serve.
Bregel said the EDA does not want to single out any specific type of business. If a business meets eligibility and funds are available, it will receive funding.
Bregel said they are aware that by supporting new businesses, the EDA is taking a risk because every new business is a risk. However, the potential benefits of adding new businesses to New Ulm are also great.