Business Incentives

Key resources

  • Pelican Rapids EDA and City of Pelican Rapids: The Pelican Rapids Mayor along with 1 council person and 3 community members and business owners serve as the governing body of the Pelican Rapids Economic Development Authority (EDA) which has broad powers to provide encouragement and financial support of economic development and redevelopment in Pelican Rapids.

Key terminology         

  1. Tax Abatement: Qualifying taxes are “abated” (or more like “rebated”) to a qualified business for a set period of years (up to 15-20 years). Would need to go before each taxing district separately: the city, the county and the school district for approval.

Contact: City Administrator, Lance Rosium

  1. Tax Increment Financing (TIF): Qualifying taxes are “captured” and used to write down the costs of the project. Some of the eligible activities include land, site improvements, and utilities. Would need to go before the city for approval.

Development Resources:


  1. Local low interest loan programs & grants Home | Pelican Rapids Area Economic Development Corporation (
  2. Lake Region Electric Cooperative revolving loan fund:
  3. City Land
  4. Tax Increment Financing
  5. Tax Abatement
  6. Reduced or free utilities: The City of Pelican Rapids operates its own sewer and water systems and the costs of these utilities can be decreased or eliminated for a period of time for new development, including residential.


  1.  Community Development and Housing - Otter Tail County, MN
  2. Otter Tail Power Company business assistance:

State and National

  • Veteran Entrepreneur Portal: Resources about financing and business development for veterans.
  • Minnesota Investment Fund: Low-interest loan program from the state, which grants money to the city, which in turn lends money to the business at a negotiated rate, typically 1% - 4%. Dollar amount of loan is based on number of jobs created at certain wage thresholds, up to $500,000
  • Greater MN Job Expansion Fund: The Greater Minnesota Job Expansion Program provides tax benefits to businesses located in Greater Minnesota that increase employment.
  • Minnesota Angel Tax Credit: Provides a 25-percent credit to investors or investment funds that put money into startup companies focused on high technology, new proprietary technology, or a new proprietary product, process or service in specified fields.
  • MN Job Creation Fund: The Job Creation Fund provides financial incentives to new and expanding businesses that meet certain job creation and capital investment targets.
  • USDA Business Loans and Grants: The USDA has a variety of loan and grant programs available to businesses, many specific to particular industries. For example, the Rural Business Intermediary Relending Program has up to $250,000 available at a negotiated interest rate between 1-4%. Can be used for land, building, equipment, working capital, feasibility studies, interest, and fees for professional services.

Business Management Resources:

Pelican Rapids Market Area Profile

Starting and Managing a Business

Small Business Development Center (SBDC): Our regional SBDC at Minnesota State Community and Technical College- Moorhead Campus. Their team can assist you directly with low or no-cost business planning and counseling.  Contact SBDC here --> Contact Us (


Pelican Rapids Business Retention and Expansion report


Related to business starts, expansion, funding and education.