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A potential new business in Gaylord has asked the City to sponsor a grant application from the U.S. Department of Agriculture Rural Development.

Nick Nelson, president and CEO of Midwest Biogas of Gaylord, asked the City, last week, to apply for a $100,000 grant through the Rural Business Enterprise Grant Program. Although the grant can be written generically, it would be anticipated that Midwest Biogas would receive the majority of the funds. Grant applicants must be public bodies or private nonprofit corporations serving rural areas.

The grant application is due April 10. Nelson said he had just learned about the grant March 30.

The grant funds could be used for:

• Acquisition and development of land, easements and rights-of-way

• Construction, conversion, enlargement, repairs or modernization of buildings, plants, machinery, equipment, access streets and roads, parking areas utilities and pollution control abatement facilities

• Loans for start up operating cost and working capital

• Technical assistance for private business enterprises

• Reasonable fees and charges for professional services necessary for the planning and development of a project

• Financial assistance to third parties through a loan (revolving loan fund)

• Training, when necessary, in connection with technical assistance

• Create, expand and operate rural distance learning networks or rural learning programs that provide educational instruction or job training instruction elated to potential employment or job advancement for adult students.

A small and emerging business is defined as a private business that has 50 or fewer new employees and has less than $1 million in projected gross revenues.

Nelson said he and his partners plan to have Gaylord has one of seven locations for a proposed bio-energy park. Gaylord’s project would be about $40 million and employ an estimated 14-16 people. Midwest Biogas would work with several area food processors.

A study recently completed by SEH showed that it would be feasible to have a project in Gaylord that would turn organic waste from the area into an energy source. This study was funded, in part, by a grant from Clean Energy Resource Teams (CERT), the City of Gaylord, and Michael Foods Egg Products Inc.

Nelson said the company has a business plan but that it needs to have it written in professional form. The company will also need agreements in place with area food processors in order for money to be invested in the firm. They also need to find property to locate. There are currently three investors interested, according to Nelson.

The City asked that Nelson meet with a committee from the Economic Development Authority and the City attorney. The Council has scheduled a special meeting Wednesday at 7 p.m. to act on the grant application.