The Grand Forks Growth Fund Committee on June 23 approved two loans totaling about $399,892 to Vertical Malt to support the company’s new malting and milling operation in Grand Forks.

Vertical Malt, a value‑added agricultural business that the record shows began as a family farm in Fisher, Minnesota and piloted malting operations in Crookston, plans to lease a 20,000‑square‑foot space at the Enclave Exchange warehouse on the south end of Grand Forks and expand milling and storage operations for barley and malted flour. The Growth Fund approved a $325,000 Economic Development Administration (EDA) Revolving Loan Fund (RLF) loan and a Jobs Development Authority (JDA) FlexPace loan of $74,892.

Committee staff and Grand Forks Region EDC representatives said the Growth Fund portion will go largely to equipment purchases and working capital; the FlexPace funds were described as reducing interest expense on the project loan. Staff described loan terms in committee: the EDA RLF would carry a six‑month deferral followed by 120 monthly payments at 4.0 percent; the JDA FlexPace piece would be deferred for 66 months and repaid in 12 monthly installments at 3.75 percent. Security for the loans includes a subordinate mortgage, blanket UCC on existing and to‑be‑purchased equipment, and personal guarantees by the principals; staff reported an overall loan‑to‑value of about 72 percent.

Adam Wagner, identified in the meeting as owner of Vertical Malt, told the committee wages and payroll are part of cost of goods and that the requested loan proceeds will not be used directly to pay salaries but rather for equipment and material costs; he said founding principals are also contributing capital to cover startup payroll needs. The company told the committee it expects to hire employees in Grand Forks once approvals are in hand and that early hires will be local where possible.

The committee voted to approve the combined financing on a unanimous vote.

The Growth Fund and EDC staff said they will provide additional financial details on JDA cash balances and loan portfolio metrics at a later meeting to show available funds for future loans.