The City of Cottage Grove is hearing back from businesses on how they used Small Business Emergency Assistance grant funds.

In May, the city council and the Cottage Grove Economic Development Authority set up a Small Business Emergency Assistance Grant program.

“The program was in response to the COVID-19 pandemic and provided financing to assist local businesses in our community to sustain their operations, preserve employment and prevent business closures. The intent of the grant program was to promote the long-term economic vitality in the community,” Economic Development Director Christine Costello reported to the Cottage Grove City Council at its Oct. 7 meeting.

The grant program was set up with $300,000 from the EDA Trust, and grants of up to $10,000 per business were provided. Businesses needed to prove they were profitable prior to COVID-19, and provide proof of income loss due to the pandemic and Gov. Walz’s Executive Orders. Businesses had to be in business for at least one year and have 70 employees or less, as well as gross income less than $3.5 million annually.

After three rounds of grants, the Small Business Emergency Assistance Grant Program assisted 19 local businesses for a total in grant funds of $181,800.

Assisted businesses included: All About Nails Belissimo Salon and Day Spa Las Margaritas Mathnasium of Cottage Grove Dance by Kris Historic John P. Furber Farm Healing Place of Cottage Grove Bongaards Family Meats Oasis Chiropractic VFW Post 8752 New Century Salon Turbo Nails Carbone’s Kitchen and Pub Cottage Grove Florist Cedarhurst Hound Around Resort Salon 80 Hair Studio Integrity Dental Pretty Nails The businesses signed a forgivable loan agreement that stated the funds had to be used for eligible expenses, like mortgage, rent or utility fees or current payroll, accounts payable or taxes.

The businesses have to file a report by Nov. 1 to the city and EDA on how grant funds were used.

A reminder email is being sent out this month to businesses that have yet to submit that information.