The Red Cloud Economic Development Committee was started in 2001 to promote economic growth within the city. The goal is to attract new businesses and maintain the existing businesses in Red Cloud. Over the years, the Committee has met with a number of prospective business owners to discuss the possibilities of locating in Red Cloud. Among the successes were recruiting Subway sandwich shop to locate in Red Cloud. The committee also removed a dilapidated building to make it possible for a young mechanic to open his first repair shop.

Each year, the Economic Development Committee provides matching grants to downtown business owners for store front improvements. Thus far, the committee has awarded over 20 grants. The members are appointed by the mayor and city council. Current members are Don Theobald, Gary Thompson, Marianna Harris, Laura Roybal, Mike Kenny, Darrel Caraway, Steve Wilson, and Emma Bohrer. Council person Barb Sprague is the liaison for the City Council.