- Economic Development
- Our Incentives
The City of New Ulm and the New Ulm Economic Development Authority offers several programs to assist businesses in relocating or expanding within our city limits. We welcome your inquiries and the opportunity to help your business find success in New Ulm. We will work with you to develop a customized incentive package that meets the needs of your business.
Revolving Loan Fund
The purpose of the Revolving Loan is to encourage economic development by providing working capital funds to existing and new businesses. Revolving Loans may be used for the expansion or rehabilitation of commercial and industrial buildings. Projects typically include the creation and retention of permanent jobs. Loans range from $20,000 to $250,000 with a low (1% - 2%) interest rate for a 10-year term.
Commercial Property Loan Program
A Commercial Property Rehabilitation Loan can help with permanent improvements to commercial buildings. This program provides commercial property owners or tenants with a low (2%) interest loan up to $74,000 for a 10-year term.
Small Business Loan
The Small Business Loan Program can assist small businesses by providing short-term capital to stabilize or expand their operations. Loans range from $2,500 to $10,000 with a low (1%) interest rate for a 5-year term.
Small Business Incentive Grant
If you are starting a new business and need capital to get off the ground, you can apply for a Small Business Incentive Grant. This program provides up to $10,000 in reimbursement for eligible expenses during the first year of operation. The only home-based businesses eligible for this program are in-home daycares.
Signage and Awning Grant Program
This program is intended to offer funds to property owners or tenants within the Downtown Commercial Center Historic District to add or replace signage and/or awnings. Grants of up to $2,000 are available with a 50% match by the applicant. The project(s) must receive prior approval from the Heritage Preservation Commission to access these grant funds.
Tax Increment Financing (TIF)
Tax Increment Financing (TIF) may be available to offset development costs such as land or building acquisition, utility relocation, site improvements, and installation of public infrastructure. TIF Districts help encourage development that would not otherwise occur without this financial assistance.
Tax Abatement may be available for projects that improve vacant land or a building and that result in higher property taxes on the property. Projects must provide a public benefit.