EDA votes to split microloan funds after debate over $17 wage requirement

The East Grand Forks Economic Development Authority voted Wednesday to divide its microloan program into two separate funds — one restricted to MYTH‑linked dollars and one unrestricted — after a lengthy discussion over a wage requirement tied to the source of some funds.

Board members and staff debated whether money loosely tied to “MYTH” funds requires recipients to pay a $17 minimum wage (which could include benefits or tips). A member summarized the concern: “We don’t want to like exclude people because this is a microloan — it should be attainable,” and asked whether the wage calculation could count benefits toward the threshold.

Staff said the MYTH fund represents the largest single balance in the portfolio (discussed in the meeting as about $1.9 million) and that other revolving accounts could be used instead if the board chose to avoid the wage restriction. Questions centered on verification and administrative burden, with one member noting, “I don’t see that being easy,” when asked how the EDA would confirm ongoing wage and benefit compliance for small businesses.

A board member moved to create two separate pots — a restricted MYTH fund and an unrestricted discretionary microloan fund — and to steer applicants to the fund for which they qualify. The motion was seconded and carried. After the vote staff said they would split the accounts and provide a numerical breakdown at the next meeting and that typical microloan amounts would range from roughly $2,500 to $10,000.

Board members asked staff to keep the application process as simple as possible so paperwork would not discourage applicants. The EDA will publish eligibility guidance when it rolls out the two funds and will report the split amounts at the following meeting.