NEW ULM – The New Ulm Economic Development Authority (EDA) is bringing its small business incentive grant program back for 2025 with an emphasis on specific types of businesses.
The grant will open from Nov. 1 to Dec. 30. The program requires new businesses to have been open for at least 3 months before applying. The applicant must also complete a business plan and meet with Consultant Wendy Anderson to be eligible for the $10,000 reimbursement grant.
However, this year the EDA will be prioritizing; restaurants, retail, childcare, and light manufacturing businesses.
Economic Development Director Heather Bregel said any small business can apply but priority will be given to those four categories of businesses.
The EDA first began offering the grants in 2019. Initially, only five grants of $10,000 were awarded each year on a first-come first serve basis. After the first few years, the grant program became extremely popular with more than five businesses applying for the grant. The EDA was forced to create a waiting for applicants seeking funds in future years.
In 2022, the EDA was able to fund 10 businesses thanks to additional funding. Eight businesses were awarded the grants in 2023. In 2024, the full grant amount was reduced to $7,500 to help 12 businesses. A total of 43 grants have been awarded since the program began.
In August, the EDA decided to bring the grant amount back up to $10,000 for 2025 but also began prioritizing businesses and limited grant awards to five businesses and prioritizing restaurants, retail, childcare, and light manufacturing.
Bregel said the grant program started as a pre-COVID measure to boost small businesses in New Ulm. However, following COVID there was a boom in entrepreneur startups. The EDA has questioned how best to continue the program, if at all.
“We’re not sure if the incentive will be needed,” Bregel said. The EDA might choose to phase out the grant program in future years but will continue it through 2025.
Detailed information on eligibility requirements and the application process can be found at www.newulmbusiness.com/incentives
Economic Development Director New Ulm Economic Development Authority (507) 233-2107 [email protected] www.newulmbusiness.com.
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