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The Mower County Board of Commissioners have approved a forgivable loan program that will make money available to businesses in LeRoy affected by Highway 56 construction through the community.

The project, which includes 1.2 miles of road through the heart of LeRoy, has had a direct and detrimental impact on businesses along that stretch, straining the location’s ability to do business.

According to Commissioner Polly Glynn, who represents that portion of Mower County, customers have found it difficult to get to the businesses resulting in a large decline in dollars.

“One business didn’t even have an alternative route to their business,” Glynn said, adding, “They’re hurting.”

The program will use $80,000 in unspent budgeted economic development funds and initially be managed on the county’s behalf by the Development Corporation of Austin, but there is a chance it could be shifted to the Community of Economic Development Associates out of Chatfield, who have more of a boots-on-the-ground location within the area.

Businesses will have to apply for the loan and will need to prove year over year revenue. A maximum of $10,000 will be available for eligible businesses with a minimum of $5,000. Determined funds are based on percentage of loss.

Mower County Administrator Trish Harren Gjersvik said that businesses in LeRoy have lost around 70%-80% in revenue because of the project, which was delayed because of around 30 inches of rain that fell early in the summer.

The county originally approached the Minnesota Department of Transportation for aid, but was turned down because of a fear of setting precedent on many projects throughout the state, Harren Gjersvik said.

She said the county plans to go back to MnDOT and ask for special consideration given the amount impact on LeRoy businesses.

Further stipulations of the loans coming out of the program state that if the business is still in operation after three years, then the loans will be forgiven.

According to MnDOT, the project is slated to be finished late fall of this year. Glynn told board members that new pavement has been laid from Hanson Tire on the west end of town to the Community Center. The rest of the road remains torn up.