Duluth 1200 Fund

There were 6 new 1200 Fund Advance/Bridge loans that were approved and drawn down in 2023. Four loans contained a provision for partial loan forgiveness based on the number of new jobs created and maintained for a specific period of time and 2 loans were given to expand a business for a current 1200 Fund client. For the loans with a partial loan forgiveness clause, quarterly job reporting is required in order to substantiate the amount of loan forgiveness that will be granted to the borrowers upon fulfillment of the loan agreements' job creation & maintenance requirements. In 2023, there were 5 business entities that qualified for loan forgiveness because of achieving their job creation and maintenance provisions of their loans; or, they met the required number of childcare slots created and maintained, per their agreements. The Duluth Downtown business and retail area continues to suffer from the many business closings, from the effects of the COVID pandemic, with many empty and unoccupied office and retail spaces still remaining in 2023. In 2023, the 1200 Fund gave grants to several non-profits, whose mission & purposes are to assist entrepreneurs and businesses, to stimulate the growth & success of businesses, and for the creation of more daycare businesses, for which there is high demand for, but not enough daycare openings. In 2023, The 1200 Fund also started the Mentorship Loan Program, which are low interest loans given to new businesses to assist them in their startup costs and to build credit, along with assistance from SCORE.org, known for their expert business knowledge & support for businesses. Four Mentorship Loans were given in 2023.