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Saint Peter approves $100,000 Unforeseen Circumstances Microloan program for small businesses
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Summary
The council approved an EDA‑recommended microloan program with a $100,000 budget offering up to $10,000 per eligible business, 0% interest for up to a six‑month deferral and $100 monthly payments thereafter; loans are intended for sudden emergencies and require review by an EDA team.
The Saint Peter City Council on April 13 approved a new Unforeseen Circumstances Microloan Program intended to help local businesses respond to short‑term emergencies such as natural disasters, infrastructure failures, public‑health events or sudden regulatory impacts.
City staff and Economic Development Authority members described the program as modeled on prior local microloan efforts. The council approved a $100,000 program budget; loans will be limited to one per business with a maximum principal of $10,000, a potential deferral of up to six months at 0% interest, and proposed $100 monthly payments that, at that payment level, would take “a little over eight years” to retire in full, staff said.
Staff said the EDA will use a small review team to vet applications quickly, generally expect a personal guarantee but allow limited flexibility for urgent payouts, and will base eligibility on verifiable income and expense documentation. The EDA recommended making the program a one‑time allocation from the revolving loan fund with the option to reauthorize additional funding if demand merits it.
"The EDA did recommend approval of this loan program," staff said, and council members praised the EDA's process and participation from local business owners during committee discussions.
The council approved the resolution establishing the program and guidelines; staff said repayments will return to the city's revolving loan fund and that the program will be subject to regular review.
