About 170 people will keep their jobs at Larson Boat Co. in Little Falls after its owner secured $1.85 million in loans from community groups and government agencies.

The boat company's former owner, Genmar Holdings Inc., had filed bankruptcy in June. In January the Little Falls facilities and brands were auctioned off. But later that month, Twin Cities entrepreneur Irwin Jacobs' company, JD Acquisitions LLC, acquired Larson Boat Co., as well as Larson, Seaswirl and FinCraft boat brands.

Hopkins-based JD secured a $7.4 million financing package to keep the Little Falls boat plant open and create jobs. That includes $1.85 million in loans from the Initiative Foundation, Community Development of Morrison County, North Central Economic Development Association Inc., the city of Little Falls, the Little Falls Economic Development Authority and the Minnesota Department of Employment and Economic Development.

The jobs — which pay an average of $15 an hour — are welcome in Little Falls. Last week Brunswick Corp. said it would close its boat plant, resulting in 180 layoffs by September.

"It's about saving 170 jobs in the Little Falls community," said Kathy Gaalswyk, Initiative Foundation president.

The company has employed as many as 800 people, she said, but she could not cite other specifics.

DEED, the city of Little Falls and the Initiative Foundation each put up $500,000, which is calculated into the $7.4 million financing package. Community

Development of Morrison County put up $250,000 and North Central Economic Development Association invested $100,000, said Carol Anderson, executive director of the Morrison County development group.

Anderson said people from all the groups came together, and on Jan. 27, they all approved the funding.

A news release from the Initiative Foundation says Larson will continue to increase production under Larson, FinCraft and Seaswirl brands.

It's also going to look for "other contracting opportunities with other manufacturers, expanding their dealer network and increasing international sales," the release states. It also says the company hopes to hire 150 to 175 more people in the next two years.

Anderson said the timing is right. "We felt that the economy is starting to turn and we think Mr. Jacobs also thinks there's going to be markets for these boats, and so we're going to try to help him with it," she said.