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State fund to help Barrel O' Fun's $17.56 million expansion project

An application for $500,000 from the Minnesota Investment Fund will be sought by Perham to help finance the $17.56 million Barrel O' Fun expansion.

The expansion of the snack company's pretzel and tortilla chip production is expected to create up to 100 new jobs.

Financing for the project includes $15 million in bank loans, and $2 million directly from Barrel O' Fun-KLN Enterprises.

Construction on the building is already underway. The 78,000 square foot addition is expected to be completed by mid-July.

The largest share of the project is the elaborate production and cooking equipment--which is about $10.65 million of the total investment.