Kenyon has no cash relocation grant. What it has is an Economic Development Authority with a small facade grant, a willingness to use tax increment financing and abatement, an industrial park with lots for sale, and eligibility for every rural program a Greater Minnesota city of 1,900 qualifies for. The EDA's staff is Todd Kieffer of Community and Economic Development Associates (CEDA), in City Hall Tuesdays and Thursdays, todd.kieffer@cedausa.com.
City and EDA programs
| Program | What it is | Terms | Source |
|---|---|---|---|
| Commercial Facade Improvement Program | 50 percent reimbursement grant for exterior work on buildings in C-1, C-2 and I-1 zones: signage and lighting, doors and windows, awnings, removal of non-historic materials, ADA access, code corrections, painting, tuck-pointing, roofs. | Up to $4,000 per building; first come; owner must be current on taxes and utilities; before-and-after photos and receipts; nothing started before approval; interior work, additions and acquisition ineligible. | Program guide, Dec. 2025 |
| Tax Increment Financing | City/EDA TIF policy for private development that "would not otherwise occur." Eligible uses: blight removal, housing near downtown, affordable housing, job retention, downtown parking, tax-base growth. | "But for" finding required; independent underwriting; developer pays studies. Example: May 18, 2026, $1.855 million 26-year TIF for Kenyon Crossings (36–38 units, 127 Gunderson Blvd). | TIF Policy |
| Tax abatement | Offered alongside TIF for industrial-park projects. | Negotiated case by case. | Industrial Park page |
| Business Subsidy Criteria (Administrative Policy 15) | The framework any subsidy must satisfy under Minn. Stat. 116J.993–.995: livable-wage jobs, tax base, diversification, blight removal, adaptive reuse. | Public hearing; five-year stay at the site; wage and job goals in a written agreement; annual reporting. | Policy 15 |
| Kenyon Industrial Park | 30 acres, half a mile east of Hwy 56 on County Road 12, with three-phase electric, natural gas, sewer, water, broadband and on-site stormwater. | "Site incentives may be negotiable." Lots listed on LocationOne. The EDA carries lots as land held for resale; the Falcon Investments sale netted about $140,000. | cityofkenyon.gov/eda |
| Succession matching | Strategic-plan objective to identify owners near retirement and match them with buyers. | Case by case through the EDA. | Strategic Plan 2023–27 |
County and regional
| Program | Terms | Contact |
|---|---|---|
| Goodhue County Revolving Loan Fund | $5,000–$15,000 for equipment, land, buildings, machinery; flexible terms. | Goodhue County EDA, 651-385-3001 |
| Red Wing Port Authority IRP loan | 20–40 percent of a project up to $150,000; 3–8 percent; up to 7-year term amortized over 15; 10 percent owner equity; open to Goodhue County cities since 2016. | Via Kenyon EDA; fact sheet |
| SMIF Business Loan | Up to $200,000 for manufacturing, technology, local foods, ag and health care in the 20-county region. | Southern Minnesota Initiative Foundation, 507-455-3215 |
| SMIF Emerging Entrepreneur Loan | Up to $15,000 for BIPOC, women, veteran, disabled or low-income owners. | SMIF |
| Kenyon Area Community Foundation | Formed July 2025 as a SMIF component fund with $20,000 from Security State Bank; local board; grant program not yet published. | SMIF, inquiry@smifoundation.org |
| Free counseling | SBDC at RCTC Heintz Center, Rochester, 507-285-7436; SCORE South Central MN, 507-455-3215 x124; WomenVenture, 612-224-9562. |
State of Minnesota (Greater Minnesota thresholds apply)
- Job Creation Fund: up to $1 million after performance; Greater Minnesota threshold only $250,000 capital investment and 5 full-time jobs.
- Minnesota Investment Fund: forgivable loans typically $50,000–$1 million, applied through the city.
- Greater Minnesota Job Expansion Program: sales-tax refunds up to $2 million a year for existing businesses adding jobs.
- Job Training Incentive Program: training grants up to $400,000.
- Angel Tax Credit: 25 percent credit for investors in qualifying startups, when funded.
Federal
Kenyon is inside USDA Rural Development's eligible area: Business & Industry loan guarantees, REAP energy grants, Value-Added Producer Grants, and Section 502/504 housing programs. SBA 7(a) and 504 loans are available through Security State Bank of Kenyon and other area lenders.
Sources: cityofkenyon.gov/eda and linked PDFs; Goodhue County EDA; Red Wing Port Authority; SMIF; DEED program pages; USDA Rural Development. DEED figures were confirmed against secondary sources only; verify on mn.gov/deed before relying on a threshold.
Questions
Does Kenyon, MN offer business incentives?
Yes: a 50 percent facade grant up to $4,000 for downtown and industrial buildings, tax increment financing and abatement for projects that pass the but-for test, negotiable industrial park lots, and referrals to county, regional, state and USDA loan and grant programs. Contact EDA coordinator Todd Kieffer, todd.kieffer@cedausa.com.
How do I apply for the Kenyon facade improvement grant?
Pick up a paper application at City Hall or email todd.kieffer@cedausa.com. The building must be in a C-1, C-2 or I-1 zone, you must be current on taxes and utilities, and work cannot start before EDA approval. The grant reimburses 50 percent of eligible exterior costs up to $4,000 after completion, with before-and-after photos and receipts.