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December 2007
Borderland Entrepreneurs Receive City Support
The landscape and economic future of this border town are changing, thanks to the City of International Falls commercial loan program. Eight local businesses and the local Moose Club have taken advantage of access to the funds, so far. The revolving loans provide essential gap funding for building enhancements and business growth.
A prominent once-empty building, now filled with a thriving Hardee's restaurant along the west entrance to the community, was the first to receive the city loan in 2005. The restaurant owner, Cindy Peterson, was attracted to the simplicity of the application process, as well as the low interest rate. "If anybody is willing to start a business, or enhance an existing business, it is an awesome way to go" she stated. The loan helped facilitate the re-opening of a new Hardee's restaurant in the same building that was vacated by the business years before. Many of the former employees, displaced by the closure, were invited back to work for the Peterson family. And, locals will tell you, it is good to see so many familiar faces working once again at the popular restaurant.
According to Rod Otterness, City Administrator and administrator for the loan program, the program was created as a way for the city council to support existing businesses and to acknowledge great local partners. Several local banks serve as the loan processors and hold the first mortgage as collateral. The city of International Falls holds a second mortgage. This arrangement creates a lower risk, making the loan more attractive to the lenders. Mike Katrin, President of Border State Bank, credits the program for benefiting many areas of the community. "We really like the program. It's been a great partnership with the city. The city provides gap financing on good projects that might not otherwise get done".
Due to the successful impact on local businesses currently participating in the program, the City Council agreed to contribute $100,000 from the city's economic development fund to the program. This will allow for more new loans while repayment of the existing loans continues to replenish the fund.
The local Moose Club recently received $10,975.00 to address a boiler issue. With an estimated savings of $600 a month as a result of the new equipment, the low interest loan will have a sizeable impact on the club's bottom line. Other businesses receiving the vital loans are Northland Distributing, Rainy Lake Marine, Jerry Snyker-Hwy 53 Office Suites, Falls Lumber, Randy's Discount Auto Center, the Viking Lounge and the Rose Garden restaurant. Each of these business enhancements means jobs, real estate improvement and, in no small measure, an overall economic infusion for the area.
For the owners of the Rose Garden restaurant, Kim Nguyen and Boi Vi Phung, the loan means the realization of a dream. "They don't call this the land of opportunity for nothing", Nguyen told the City Council. "I escaped a country of life and death for education and I am proud to be here and raise my kids in a good community
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