Legislators See GAP Grant Success at Floe International
The Growth Acceleration Program is realizing a $15 to $1 return on investment in Minnesota companies.
BY ANDREA LAHOUZE
It is rare that lawmakers see the direct result of a law change in less than a year after it was approved. And even more rare is the opportunity to see a measurable, positive benefit. But that is exactly what happened in November when lawmakers got a first-hand look at the positive results of a new law intended to spur growth of small manufacturing businesses across the state.
The new program, the Growth Acceleration Program, or GAP, provides manufacturers with fewer than 100 employees a matching grant of up to $25,000 per year for efficiency and growth. Combined with a dollar-for-dollar company match, the initial grant quickly grows to a $50,000 investment.
State Sen. David Tomassoni (DFL-Chisholm) sponsored the legislation. “The idea behind the Growth Acceleration Program is to aid small businesses with their improvement needs. Oftentimes, they either don’t have the resources, knowledge or time—or the combination of all three— to get up to speed on the latest solutions that might help their business grow and prosper and maybe even create new jobs,” Tomassoni says.
Floe International received a GAP grant to help develop its workforce and implement techniques to increase efficiency of its small aluminum dock, boatlift and trailer business.
Two recent tours of Floe’s facilities in Hoyt Lakes and McGregor—hosted by Enterprise Minnesota— revealed legislative intent is swiftly becoming reality. Sen. Tomassoni, and State Reps. Tom Rukavina (DFL-Virginia) and Loren Solberg (DFL-Grand Rapids) toured Floe’s two facilities, where GAP-financed improvements were already underway.
Bret Bussman, Floe International human resource manager, says that GAP funds have helped the company implement lean principles in both its McGregor and Hoyt Lakes locations. “Floe’s manufacturing facilities have a significant financial impact on both the McGregor and Hoyt Lakes communities,” he says. “[GAP funding] enabled Floe to further streamline production, reduce inventory and remain competitive in this volatile economy,” Bussman says.
Enterprise Minnesota, which administers GAP funding, has provided GAP grant monies to more than 50 companies statewide over the past year.
Enterprise Minnesota President and CEO Bob Kill says GAP’s $15 to $1 return on investment is key to helping the industry remain competitive in an unpredictable market. “GAP is particularly important during these economic times,” Kill says.
“With nearly every business owner we speak with, each one emphasizes the need to invest in business development right now. GAP is a major part of that investment ... [and has] a huge impact in terms of job retention and job creation for the communities where these companies are located.”