Lake City EDA Financial Programs
The Lake City Economic Development Authority (EDA) strives to support a vibrant economy in Lake City by supporting existing businesses and helping new businesses become contributing members of the community. Our mission is to foster economic development and help businesses create and retain jobs.
The EDA has a number of financial resources available to accomplish this.
This page provides you with an overview of the financial programs incentives available through the Lake City EDA.
For current details on any of our financial incentives you can connect directly with the sponsoring organizations or, contact us at 651-345-6808.
Financing Economic Development Projects
The first rule of economic development finance is: There is no free money.
Economic development projects are funded primarily through owner equity and private bank financing with economic development funds available for gap financing.
Many times, owner equity and conventional bank financing do not provide all the required funding. This may happen because of bank lending limits, inadequate equity, insufficient collateral, or the business cannot afford market interest rates or term requirements. Economic development financial tools can provide funding needed to fill this gap.
Owner Equity – Owner equity must be present. At least 10% of the total project cost or more may be required. Typically, more owner equity injected into a project reflects a stronger application.
Bank or Private Loan – This provides 40 - 90% of the project’s funding.
Gap Financing – When needed, gap financing provides the remaining amount necessary to make the deal work. Gap financing can come from multiple sources and supply up to 50% of a project’s funding.