EDA authorizes BCEZ funds to support workers’ compensation credits for small employers

The East Grand Forks Economic Development Authority approved a plan to use Border Cities Enterprise Zone (BCEZ) funds to help local employers offset workers’ compensation costs.

Staff said the proposal was modeled after Moorhead’s BCEZ practice and explained the city receives an annual allocation from the state in the range of roughly $103,000–$107,000. The EDA director told the board the program would prioritize smaller businesses that are not undertaking major construction or expansion projects and proposed limits, including a maximum benefit of $30,000 per business and support up to 25% of a qualifying workers’ compensation expense, subject to the availability of funds.

The director described an internal application and review process: businesses would apply, the loan committee would review requests and staff would determine how much of the budget could be committed in a given year. After internal approval, staff would submit material to the state department (referred to in the packet) and then the Department of Revenue for final processing and tax-credit issuance.

A member moved to approve the proposal, a second was recorded and the Chair called the roll; the Chair announced the motion carried.

Board members discussed whether to set an internal annual budget ahead of the state allocation and staff said the allocation is typically known in mid-July while DEED submission deadlines fall in October, allowing the board to set an internal deadline earlier in the year if desired.

Staff said they will circulate application details and further guidance to the board and the loan committee.