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A minimal city investment has led to substantial efforts to attract and retain jobs in Ely, local officials reported this week.
After earlier questioning by city council member Adam Bisbee, city officials got data from the Northland Small Business Development Center about its work here in 2023.
It showed significant impact, particularly in comparison with other Range cities where the SBDC also counsels and advises business owners and entrepreneurs.
According to the data, the SBDC worked with 16 clients and helped raise over $1.8 million in capital in 2023.
The net result was three business start-ups and 61 jobs that were either retained or created.
“One thing that impressed me was jobs created and retained,” said city clerk-treasurer Harold Langowski. “That’s 61 jobs they helped us retain or create. I think we’re getting our money’s worth.”
The city provides about $4,000 in annual funding to the SBDC, which has a business advisor based in Virginia available to assist business owners on everything from business plans to direction in pursuing capital.
“I was quite impressed with the numbers that were given,” said John Fedo, the city’s economic developer. “When you look at the the distribution of projects and capital raised, it says pretty well for the community and the work being down and how the SBDC has been helping at a pretty good clip here.”
Virginia, which has more than twice the population of Ely, had only one business start-up aided by the SBDC and a fraction of the capital raised.
SBDC worked with 24 clients in Virginia compared to 16 here.
Langowski said the data provides confirmation that the city’s contributions to SBDC counseling are a worthy investment.
“The proof is in the pudding,” said Langowski.
• Also Tuesday, as council members met as the city’s economic development authority, both Fedo and Langowski made note of disaster funds that are available - in the form of low-interest loans - to business owners hurt by the lack of snow this winter.
Langowski said money is available to a wide assortment of businesses, to those who rent snowmobiles or offer dog-sled trips, or service industries hit hard by a lack fo winter-related business this year.
“Businesses impacted by all the activities that bring people to Ely - all of those businesses could take advantage of the loan program if they need it,” said Langowski.
Although Ely was hit by a spring snowstorm this week, from December to February, the state experienced the warmest meteorological winter on record. Through Feb. 29, there was only 14.3 inches of snow in the Twin Cities, the second-lowest season total on record. This lack of precipitation has exacerbated an ongoing drought. Eighty one counties in Minnesota are currently covered by U.S. Department of Agriculture disaster declarations for drought.
Impacted businesses can apply for the Economic Injury Disaster Loans through the Small Business Administration The loans are designed to help businesses get through emergency situations that have impacted their economic well-being. Under the EIDL program, businesses can borrow up to $2 million to cover their actual losses. Businesses pay no interest on the loan for the first year and a maximum rate of four percent for the rest of the loan period.
There are 81 counties in Minnesota covered by 13 disaster declarations. Business owners can learn more about eligibility, find an application, and learn more about application deadlines for their county at the SBA’s disaster assistance page.
Businesses impacted by a lack of precipitation will enter their county’s name and see a list of all open disasters for their county. They should pick one where the incident includes “drought.”
Submit applications and find additional disaster assistance information at https:// lending.sba.gov Applicants may also contact Minnesota’s Small Business Development Centers and SBA’s Customer Service Center at disastercustomerservice@ sba.gov. You can also call 800-659-2955 from 7 a.m. to 7 p.m. Central Time on weekdays.
“My only suggestion is to apply as soon as possible,” said Langowski. “Sometimes these programs are first come first serve and when the money is gone it’s gone.”
