Community Partners

The Benson County Job Development Authority (BCJDA) was established in 1993 as a county-wide authority committed to addressing the needs and problems of economic development in Benson County.

Purpose

The purpose of the BCJDA is to use the proceeds of the mill levy to provide financing incentives for businesses to locate or expand in Benson County. The primary purpose of the Authority is to create new jobs, save existing jobs, create new wealth, expand the local tax base, increase capital investment, diversify the local economy, improve the entrepreneurial climate of the region & generally expand the primary sector financial base of the county.

Goals and Objectives

In order to carry out the purpose of the Authority it is necessary to prioritize its goals and objectives.

 1. Job Creation-The goal is to raise employment opportunities in Benson County by creating new jobs either by new business start-ups, relocating businesses into the county or by expansion of existing businesses.

2. Job Retention-This objective is to support and assist existing businesses to grow within the county and stop out-migration of jobs.

3. Diversification of the Local Economy-To assist the development of new businesses and the expansion of existing businesses to fill the niches that are now filled outside the county trade area.

Guidelines

One of the purposes of this document is to establish policies and guidelines on how to use the proceeds received by the Benson County Job Development Authority from the mill levy to satisfy the established goals and objectives.

The following have been adopted as guidelines for the eligibility and distribution of funds by BCJDA:

1. The funds shall be used to provide an advantage to developers expanding or locating in Benson County.

2. Whenever possible and practical the funds shall be both recycled and leveraged against other sources of economic development financing.

3. The program is to be flexible in its use so each separate project can develop on its own needs and time frame.

4. The application process shall be such that it can be easily completed and promptly processed.

The Benson County Job Development Authority Board of Directors has been designated by Benson County to examine and process applications for the purpose of utilizing the mill levy funds.

Eligibility Projects/ Fund Use

a) Eligible Applicant – Financial assistance is available only to businesses that are either start-up businesses, business expansions, or businesses relocating into Benson County or its trade area.

b) Primary Sector – Financial assistance is available to primary sector businesses that produce goods or services mainly sold outside the area, thereby importing dollars into the area. Financial assistance is also available to primary sector businesses producing goods or services which result in the retention of dollars presently exported from the area.

c) Retail – Retail projects will not be considered for assistance unless the applicant can demonstrate that the project reverses a significant export of wealth. Retail ventures normally do not create new wealth but rather re-circulate existing dollars within the community.

d) Expansion – Assistance may be available to restructure existing debt but only if it can be demonstrated that the restructuring will result in creating new jobs or the retention of existing jobs.

e) Studies – Assistance may be given to a business to match funds from other sources to prepare business plans, marketing plans or other studies pertinent to the business start-up or for expansion of a business. The studies or plans are often requirements of other loan or grant programs.

f) Financing – Funding assistance may be used to provide temporary or permanent financing for the purchase of land and associated site improvements, construction, acquisition, renovation, fees, services, purchase and installation of equipment, trade receivable, inventory, work in progress, inventory and other working capital needs. To be eligible for assistance in this category, other funding sources must also participate and it must be proven that a shortfall from conventional financing occurs.

Ineligible Activities

a)   Repayment of existing debt.

b)  Funding for projects outside Benson County that do not directly benefit Benson County.

Grants and Loans

Grants and loans are an eligible activity, under certain conditions, and will be considered when:

a)   all other financing techniques have been explored, and

b)  the applicant has demonstrated the project is exemplary in achieving the established goals of the BCJDA.

Operating Policy

a) The Benson County Job Development Authority will have substantial flexibility in the types of financing tools available to pursue general economic and industrial development goals. Examples include, but are not limited to: loans, equity positions, equipment and building purchase and lease-back, interest write-downs, grants and other financing vehicles as may be necessary and appropriate with such security as is determined by the Benson County Job Development Authority. Proceeds from the Benson County Job Development Authority fund may be used for but not limited to infrastructure improvement of sites by means of construction or roads, streets, sidewalks, curb and gutter, water and sewer systems or other public infrastructure.

b) Interest rates will not be fixed, but will be based upon the relative risk involved, the desirability of the project to the area and the immediate and long term growth potential of the business. Benson County Job Development Authority has substantial flexibility in the types of financing tools which can be used; e.g., subordinated loans, sale-lease back, interest write-downs, guaranteed loans, micro-loans, grants or other financing vehicles as may be necessary and appropriate as recommended by the Benson County Job Development Authority.

c) To the greatest extent possible, financial packages shall be tailored to meet the needs of the applicant while weighing the impact of the business venture on the area economy. Creative repayment schedules which provide a significant increase in the probability of project success may be utilized. In these cases, the economic development potential of the project must justify the non-traditional repayment arrangement.

d) The Benson County Job Development Authority may elect to review or not review projects requesting $5,000 or less when expenditures of these smaller amounts are judged to be cost effective in terms of job creation and economic impact by the BCJDA.

e) For requests in excess of $25,000, the applicant must obtain some level of bank financial institute participation unless waived by the BCJDA.

f) The decision to fund a project lies solely with the board of directors of the Benson County Job Development Authority and the decision of that Board on matters of funding are final and cannot be appealed.