Mandan has a great big, shiny new tool in its economic tool box that local leaders hope will spur activity among existing and new businesses.

The Lewis & Clark Regional Development Council will administer a $1 million revolving loan fund that will be used to assist new and existing businesses, it was announced by Brent Ekstrom, the council's director of commercial lending, on Thursday.

The loan fund was made possible through a $750,000 loan to the council from the United States Department of Agriculture and a local match of $250,000 in Mandan sales tax revenues.

"The $1 million basically is leveraged with private funding," Ekstrom said at a special press conference. "It should leverage about $14 million in private investment and create about 100 jobs."

The beauty of the USDA's Intermediary Relending Program, according to Ekstrom, is that, as the money is paid back, it can then be loaned out to other businesses. The fees and interest paid for the loans are used to grow the fund.

"The fund will be revolved two to five times over the next 10 years. This will create a huge number of jobs in the community," Ekstrom added.

Mandan Mayor Ken LaMont called it "a great day for Mandan" and said that its citizens would be happy that it was able to triple its investment of $250,000.

"The city commission certainly recognizes the potential for success in this town. We've made a commitment to new businesses and established businesses with this program," LaMont said. "For every $1 of sales tax we've invested, we're seeing $3 in return. We feel, by establishing this program, a long-term commitment to new business and existing business has been made."

The funds will be available to businesses within Mandan and in a 10-mile radius of the corporate limits. The Lewis & Clark council, with input from the city, has put together the criteria through which the loans will be made.

The loan fund will be helpful in revitalizing the downtown area, according to Mandan Business Development Director Ellen Huber, along with improving retail opportunities throughout the community.

Huber said the loans are a fill-gap financing, not meant to compete with traditional lending institutions. Applicants will have to have solid business plans documenting their financing needs. The development council is willing to take some risks other lenders wouldn't, though decisions will still be based on sound judgment.

"It's another tool that complements what is already in place, including the Renaissance Zone, Growth Fund and Storefront improvement fund and property tax exemption," Huber said.

It provides further reason for people to locate their businesses in Mandan, particularly those businesses in their early years when they need help the most, she said.

Huber gave credit to the council for making it possible. The organization brought the city the information on the program and spearheaded the application for the funds.

Clare Carlson, the USDA Rural Development state director, made the presentation of the USDA funds. He called it an example of local leadership being effective by pushing an issue to make it happen.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@;bismarcktribune.com.)