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The Pipestone Economic Development Authority (EDA) during its Aug. 18 meeting voted to pursue a childcare development forgivable loan program based on a program used by the Murray County EDA.
EDA Director Justin Schroyer said the Murray County EDA started their program a couple years ago and that it’s been well utilized. According to information he presented to the EDA Board, the goal of Murray County program is to encourage residents to become licensed family childcare providers or expand existing businesses or care centers.
Home childcare providers are eligible for forgivable loans up to $5,000 and childcare centers are eligible for forgivable loans up to $10,000, according to Murray County’s program. The funds are to be used to become a licensed provider or create more openings for children in a current operation. Eligible applicants include prospective home childcare providers, childcare centers and current providers and centers.
The loans are for five years with 10 percent of the loan amount being forgiven at the end of each of the first four years of operation and the remaining 60 percent forgiven after the end of the fifth year. The loan repayments are deferred for five years or until the provider ceases operation, whichever is first. Failure to remain an active provider results in required repayment of funds that have not yet been forgiven.
Pipestone EDA members discussed putting a cap on the amount of funding designated for the program, but did not set any specific dollar amount. Schroyer said a capital campaign is planned to raise funds to support the creation of more childcare openings such as the forgivable loan program and turning the former Good Shepherd Evangelical Lutheran Church into a daycare.
Schroyer said there are 16 daycares and one daycare center in Pipestone right now, and there’s a need for about 100 more openings for children.
“With the shortage of daycares, I think businesses would be very much appreciative, plus the parents would be very much appreciative if we could do anything we can to help out,” said EDA Chair Rodger Smidt.
In other business:
The EDA voted not to accept a proposal from a local property owner that the EDA take ownership of a home at 316 West Main Street to address blight conditions. EDA members discussed the potential redevelopment of the lot for housing, but expressed concerns about the cost to address asbestos, demolish the house, dispose of the remains, and cap sewer and water connections.