Grand Forks JDA Approves $325K Loan for Vertical Malt Expansion Project

The Grand Forks City Council convened on July 7, 2025, to address several key agenda items, beginning with a roll call that confirmed a quorum was present. The meeting commenced with the election of the vice chair and secretary/treasurer. President Sandy proposed that Ms. Lasowski and Ms. Lansky continue in their respective roles, which was unanimously approved by the council.

The council then moved to action item 2.1, which involved a loan request from Vertical Malt, a locally owned malting company established in 2023. Vertical Malt is seeking to expand its operations in the Grand Forks region by leasing approximately 20,000 square feet for office and production space. The company is requesting a total of $325,000 in Economic Development Administration Revolving Loan Fund (EDA RLF) financing and nearly $75,000 for a flex space loan. This funding is part of a larger project valued at approximately $2.9 million, aimed at acquiring machinery and equipment necessary for production.

The proposed terms for the EDA RLF loan include a 10-year repayment period with 120 equal monthly installments at an interest rate of 4%, following a six-month deferral period. The flex space loan would also feature a deferred repayment period of 66 months, with 12 equal monthly installments thereafter. The loans would be secured by a subordinate mortgage and blanket UCC on existing and to-be-purchased equipment, along with personal guarantees from the principal.

Following the presentation, the council opened a public hearing to allow community members to voice their opinions on the loan request. However, no members of the public chose to speak on the matter, leading to the closure of the public hearing.

The meeting proceeded with further discussions, including comments from council members regarding the loan request. The council's deliberations highlighted the importance of supporting local businesses and fostering economic growth within the community. The meeting concluded with a commitment to continue evaluating the proposal and its implications for the Grand Forks area.