2 Albert Lea businesses win Pohlad job grants

Published 9:35 am Monday, August 17, 2009

Two Albert Lea businesses have been awarded grants from the Pohlad Family Foundation and distributed through the Minnesota Chamber of Commerce’s Grow Minnesota initiative.

One of the two companies has opted to remain anonymous. It received $36,000. The other is Zumbro River Brand, awarded $100,000. Statewide, nearly 70 small businesses in 50 communities were selected for more than $4.3 million in grants and loans.

Albert Lea-Freeborn County Chamber of Commerce Executive Director Randy Kehr said each of the 48 members of the Minnesota Chamber winnowed the first round of applications to four from each member. Albert Lea, he said, should be commended for winning two grants.

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“We’re really thrilled. A total of $136,000 to retain employees in tough economic times is good for Albert Lea,” he said.

Kehr also praised the Minnesota Chamber and Pohlad Foundation’s fast turnaround. The applications were sent last month.

Zumbro River Brand President Pam Sander, who owns the company with other family members, said she had great support from the local chamber in applying.

“We welcome the opportunity to partner with the Minnesota Chamber to help businesses survive the storm and prepare for economic recovery,” said Jim Pohlad, foundation director. “This money will help strengthen these companies and preserve essential jobs.”

Overall, 765 businesses requested $75.3 million in assistance. The lion’s share sought grants to retain key employees. Local chamber of commerce partners and other private-sector economic development organizations in Grow Minnesota played a key role in receiving and reviewing applications.

Zumbro River Brand has extrausion machines to make cereal and snack shapes, often for specialty food that is, for instance, gluten-free, high-protein or high-fiber. The company also has machines to make powders for just-add-water products. The company’s main office is in Owatonna and it has plants in that city and in Albert Lea.

Sander said in Albert Lea the company last year installed an extrusion machine but could not afford the investment in searching for and training new employees to operate it.

Now, with the Pohlad grant funding, ZRB will hire 12 employees to run the machine and retain six workers and two managers.

“We didn’t have th revenue to justify the new crew to get the revenue,” Sander said. “It would have taken longer to get to do this.”

Kehr said the grants were aimed at job retention and job creation; businesses must show viability. The funding cannot be used for equipment.

Winning the grant “is a vote of confidence for Zumbro River Brand by the Pohlad Family Foundation,” he said.

A second round of applicants will be solicited, said Bill Blazar, Minnesota Chamber senior vice president of public affairs and development who directs Grow Minnesota.

Almost $1 million in low-interest loans will be available through a combination of money from the Pohlad Family Foundation and other sources including the Minnesota Department of Employment and Economic Development. This money will be available for loans only with a $75,000 limit per applicant. Loans may be used for working capital or to acquire new or to improve existing assets.

Businesses that were unsuccessful in the first round may reapply, and other small businesses are encouraged to apply, Blazar said. Application deadline is Sept. 8 to the local Grow Minnesota partners, such as the Albert Lea-Freeborn County Chamber of Commerce. Loans will be awarded in early November. Loan applications and other information will be available beginning Aug. 17 at www.growminnesota.com.

About Tim Engstrom

Tim Engstrom is the editor of the Albert Lea Tribune. He resides in Albert Lea with his wife, two sons and dog.

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