DULUTH, Minn. (Northern News Now) – 40 years ago, the city of Duluth was looking to solve an unemployment and economic crisis that left many residents moving to new cities.

The 1200 Fund is a non-profit organization created in 1985 as a development finance organization that offers low-interest loans to help start-up businesses.

On Wednesday, the group held a 40th anniversary celebration at Zeitgesit Arts with speakers from the city and from the organization to share its history.

“A bold initiative to generate over 1,200 new jobs and rebuild our local economy, and we are thrilled to say it worked,” said Tricia Hobbs, the executive director of DEDA.

Since its creation, the 1200 Fund has awarded over $12 million in loans to 93 companies in Duluth, which has helped them surpass their goal and create more than 1,900 jobs in Duluth.

According to Staff Lead Angie Stier, they do this by helping with the start-up costs that many owners face when starting a new business.

“When you want to purchase a building, you need to purchase it, renovate it, and put your own things into it for your own business. Sometimes a traditional lender doesn’t pay for all of that, and that’s a gap, so we fill in that gap,” said Stier.

Co-Owners of Juice Pharm in Duluth, Alex Killian and Katie Jacobson, took over the business in October and were grateful for the assistance from the nonprofit.

“This came upon us very unexpectedly, and we didn’t have a lot of money saved up to put into this business adventure, so the 1200 Fund helped us to get some working capital,” said Killian.

Jacobson says the fund helped them not only with the financials but also to build relationships with others who have a similar experience.

They join other businesses like OMC Smokehouse, Duluth Pottery, and Josephine’s Bridal, benefiting from Duluth 1200 Fund.

Now, the group is expanding to fill new funding gaps in the city.

Duluth 1200 Fund is also assisting with the Childcare Collaboration Grant, the Mentorship Loan, and a new Historic Fund.

“The 1200 Fund started as a response to a local crisis. 40 years later, it stands as a symbol of what’s possible when Duluth invests in Duluth,” said Laura Mullen, President of the 1200 Fund.

Mullen also went on to say the event was an opportunity to get the word out as they believe many young business owners don’t know the resources are available to them.

During the speeches, the group honored Steve Overom, who has served as legal counsel for the fund for its entire 40 years.

Following the event, all attendees were invited to watch a special screening of the 1985 box office hit Back to the Future in the Zeitgeist Zinema.

More on the 1200 Fund’s programs and how to apply can be found by clicking here.

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