Fergus Falls leaders explore economic development help from SBDC

At 7 a.m. in City Council Chambers, Fergus Falls leaders took up a proposal that could turn a general talk about growth into hands-on help for local businesses: a $15,000 city allocation to the West Central Minnesota Small Business Development Center.

The Committee of the Whole session is meant to start conversations that later move to a council meeting for action, and this one pointed directly at the practical side of economic development. Agenda materials indicated the city contribution would be matched by U.S. Small Business Administration funding and would support one consultant and outreach services, giving Fergus Falls a clearer path from policy talk to business advising.

That matters because the city’s own economic-development materials describe a system built around speed and coordination. Fergus Falls says it works with the city, county, utilities and education partners as a single project team, with tools that include local gap financing, redevelopment support, MnCIFA and green-bank options, sales-tax exemptions for eligible projects, and workforce alignment and training support. Business Development for Fergus Falls says its mission is to promote growth, encourage new industry and support existing businesses, and it administers revolving loan funds.

The SBDC piece would add another layer to that structure. The West Central Minnesota office provides no-cost consulting and training for entrepreneurs and small businesses in Otter Tail County and neighboring counties, while Minnesota’s SBDC network says assistance is confidential and free at any point in a business’s life cycle. Based at M State in Moorhead, the regional center gives Fergus Falls a nearby resource for owners trying to start, stabilize or expand.

The policy question now is how that help would be used and where residents would see the first signs of it. Downtown storefronts, start-up operators, established manufacturers and service businesses could all be in the mix, especially in a county hub where business retention can shape the labor market and tax base as much as new development does. Otter Tail County’s Community Development Agency says its own mission includes expanding housing opportunities, promoting business development and coordinating public and private resources, which places the city discussion inside a broader countywide effort.

Fergus Falls has already asked voters to back major local investment through its 0.5% sales and use tax, approved in 2022 and in effect since Oct. 1, 2023, to fund the outdoor aquatics facility and DeLagoon Park improvements. Against that backdrop, the SBDC proposal is another sign that city leaders are weighing not just whether to support growth, but how quickly that support can be turned into visible business activity, new openings and stronger local payrolls.