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INCENTIVES

Our Incentives

The City of New Ulm and the New Ulm Economic Development Authority offers several programs to assist businesses in relocating or expanding within our city limits. We welcome your inquiries and the opportunity to help your business find success in New Ulm.  We will work with you to develop a customized incentive package that meets the needs of your business.

Revolving Loan Fund

The purpose of the Revolving Loan is to encourage economic development by providing working capital funds to existing and new businesses.

Commercial Property Loan Program

A Commercial Property Rehabilitation Loan can help with permanent improvements to commercial buildings. This program provides commercial property owners or tenants with a low (2%) interest loan up to $74,000 for a 10-year term.

Small Business Loan

The Small Business Loan Program can assist small businesses by providing short-term capital to stabilize or expand their operations. Loans range from $2,500 to $10,000 with a low (1%) interest rate for a 5-year term.

Small Business Incentive Grant

If you are starting a new business and need financing to get started, you can apply for the Small Business Incentive Grant. The grant provides up to $7,500 to cover start up expenses during your first year of operation. NOTE: The only home-based businesses eligible for this program are licensed child care providers. Unfortunately, the grant is not currently available, and we are not accepting any new applications at this time. A future application round is expected to open in late 2024.

Not currently accepting
grant applications

Signage and Awning Grant Program

This program is intended to offer funds to property owners or tenants within the Downtown Commercial Center Historic District to add or replace signage and/or awnings. Grants of up to $2,000 are available with a 50% match by the applicant. The project(s) must receive prior approval from the Heritage Preservation Commission to access these grant funds.

Tax Increment Financing (TIF)

Tax Increment Financing (TIF) may be available to offset development costs such as land or building acquisition, utility relocation, site improvements, and installation of public infrastructure. TIF Districts help encourage development that would not otherwise occur without this financial assistance.

Tax Abatement

Tax Abatement may be available for projects that improve vacant land or a building and that result in higher property taxes on the property. Projects must provide a public benefit.

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