The New Ulm Economic Development Authority (EDA) on Tuesday approved annual funding allocations for its grant and loan programs in 2026.

Each year, the EDA must replenish its loan and grant programs. This includes the Small Business Incentive Grant, the Get It Ready Single Family Rehab Loan, the Homebuyer Assistance Loan and the Multi-Family Rental Rehab.

Last year, the EDA agreed to continue funding these programs through 2026 with a plan to update and revamp them for 2027. The EDA has special work sessions planned throughout the year to take a closer look at each program.

The Small Business Incentive Grant was the first program to allocate funds. This grant program began in 2019 to support new small businesses in New Ulm with their start-up expenses during their first year of operation. The grant reimburses owners for eligible expenses up to $10,000 per business. Each year $50,000 is allocated to the program, with a total of five businesses funded. In 2025, the EDA decided to prioritize retail, restaurant, childcare and light manufacturing businesses.

EDA Director Heather Bregel asked the board if they wanted to continue prioritizing the same businesses in 2026.

Board member David Christian said he would prefer to keep the same priority list for 2026 since the board will be reviewing the program later this year.

Bregel said the window for small businesses to apply for this grant would open on Feb. 1 and close on March 31. In order to be eligible for the grant, the business must be open for less than a year.

Christian made the motion to approve the $50,000 allocation to the Small Business Incentive Grant with a second from Char Reinhart-Kalk. It was unanimously approved.

The Get It Ready Single Family Rehab Program was allocated $105,373.63 to replenish the account. The EDA created the Get It Ready Loan Program in 2021. Each year $120,000 is allocated for home improvement loans. In 2025, two loans were repaid early, allowing for the funding of five loans.

Christian asked when this program would be self-funded based on loan repayment.

New Ulm Finance Director Nicole Jorgensen said, assuming the program is fully used each year, it should become self-funded by 2034.

Board member Andrea Boettger made the motion to allocate the $105,373.63 program with a second from Christian. It was unanimously approved.

The Homebuyer Assistance Loan Program received $30,126.96 for 2026. The Homebuyer Assistance Loan Program was approved by the EDA in 2019. The loan program allocates $50,000 each year to provide loans to first-time home buyers. In 2025, three loans were repaid early, allowing the EDA to fund seven loans in total. The $30,126.96 was needed to replenish the $50,000.

Bregel said the average loan in 2025 was $9,315, which is an increase from previous years and reflective of the cost of houses. She suggested the board consider adjusting the loan payment during later work sessions.

Board member Lindsay Henn made the motion to approve the allocation, with a second from Board member Mike Lieb and it was unanimously approved.

The Multi-Family Rental Rehab Program was allocated $65,478.48 for 2026. The Multi-Family Rental Rehab Loan Program was created in 2026 and allocates $150,000 each year for rehab loans to rental property owners. Four loans were funded during 2025 in a total amount of $150,000. One loan of $41,177 was repaid early.

Bregel said there are already two applicants for this program, with a third application expected.

Boettger made the motion to allocate the funds for the Rental Rehab Program, with a second from Reinhart-Kalk and it was unanimously approved.

Later in the meeting, the board approved a service agreement with Wendy Anderson to provide consulting services for new and existing businesses. The new contract includes a $200 per month increase in 2026 for an annual contract of $42,000.

The contract includes two training sessions and in-house client meetings twice a month in New Ulm as well of follow-up consultations.

The board also approved funding New Ulm Business Resource & Innovation Center (NUBRIC) for $50,000 in 2026. Bregel said the EDA had given NUBRIC $50,000 for several years and this would mark another year extension on the agreement.

NUBRIC president Steve Brown provided a report on highlights from the last year. He said NUBRIC continues to work with area schools to promote robotic programs. NUBRIC is trying to grow the local Career and Technical Education (CTE) by establishing a CTE committee. NUBRIC also plans to break great on its Tiny Home project this spring. Brown said they were able to secure building permits for the project last year.

EDA Chairwoman Michelle Markgraf said she was hesitant to provide general funding for NUBRIC, but instead provide funds for specific projects that aligned with the EDA’s strategic plan

“I would be more willing to fund something specific rather than general funding to NUBRIC,” she said.

Mayor Kathleen Backer agreed that funding a specific project might be a more realistic approach going forward, but felt NUBRIC was in a transitional process and would require funding for at least another year.

Christian said he favored funding NUBRIC for another year because he saw more activity from the organization than ever before.

Henn agreed there was more progress with NUBRIC since Brown came in as president.

“To me, this is the most collaborative people have been with each other in several years,” she said. “Why break that momentum?”

Lieb said he was behind funding NUBRIC because he felt a private economic development arm was valuable for a community.

“Sometimes when things enter the public realm, it can affect the outcome,” he said. “I am 100% behind funding it.”

Reinhart-Kalk said the EDA was planning to make big changes to its programs through a series of work sessions. She was comfortable funding NUBRIC another year, believing the board could make that determination later this year.

Boettger said she agreed with Markgraf that the EDA should move into funding specific needs rather than general funding for NUBRIC. However, based on NUBRIC’s current activity, she would support funding for another year.

City Manager Chris Dalton said NUBRIC’s acquisition of building permits for the Tiny Homes project was the largest step toward sustainability he has seen from the organization since he came to New Ulm.

“I am excited to see what moving forward and what that outcome will be,” Dalton said.

Markgraf said she was willing to approve for another year, but she expected to see projects completed.

Christian made the motion to approve the NUBRIC funding with a second from Lieb. It was unanimously approved.

Later in the meeting, the board reviewed and received the quarterly reports from NUBRIC and Wendy Anderson.

Board member Henn said the EDA payments to Anderson were nearly the same as NUBRIC’s but NUBRIC’s quarterly report was significantly more detailed with more information than Anderson’s.

“I am observing a difference in standards here in terms of what is expected in reporting,” Henn said. She asked if it was possible to get more measurable information in the report.

Bregel said they could request more detailed reports from Anderson, but would need to be clear with what the board wanted.

Mayor Backer said it would be helpful to have data on the outcome of a meeting. Anderson’s report included the number of businesses assisted, but no information on what kind of assistance was provided or if it led to new business openings.

Boettger asked if there were any success stories on businesses that started because of Anderson’s consulting work.

City Manager Dalton said for privacy reason Anderson could not name the businesses she is working with, but could provide some additional details.

Henn said she wanted the report to have some measurable impact to make sure the EDA was getting a return on its investment.