6. EDSR 06-14-2010 - Laserfiche WebLink

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Consider EDA Micro Loan Application -The Pizzeria June 9, 2010 EDA Finance Committee Meeting Page 2 of 2 In addition to the financial criteria that must be considered, the Finance Committee must also consider to what degree the applicant satisfies the criteria set forth in the Micro Loan Fund policies outlined below: Micro Loan Criteria- Downtown Rehabilitation Financing Program • Max. Loan Amount: $75,000 (not to exceed 40% of the project cost) • Interest rate: Fixed at 2% • Equity: 10% or more of project • Private Financing: 50% of project • 20% of Micro Loan dollars must be used for improvement of building facade • Exempt from job creation and wage goals because the loan amount does not exceed $150,000 and does not qualify as a business subsidy by state law The Pizzeria • Amount requested: $75,000 (37.5% of project cost) • Rate requested: Fixed at 2% • Equity proposed: $115,000 (home refinance) • Private Financing: $0 (0% of project cost) • Exterior leasehold improvements: $34,500 (46% of Micro Loan requested) • Estimates one full time and four part-time jobs created Due to the sensitivity of the proposal, the applicant's financials and full business plan will be provided for committee review at the meeting. Action Requested Staff recommends the EDA Finance Committee make recommendation to the EDA. If recommending approval, the following terms and conditions will apply: Participation Loan: Not Applicable Loan Amount: $75,000 Interest Rate: 2% fixed Term: 15-year amortization/5-year balloon Security: First position mortgage on 315 Jackson The EDA will consider the Finance Committee's recommendation at its June 14, 2010 meeting. N:\Departments\Community Development\Economic Development\Micro Loan FundU.OANS\The Pizzeria\6.9.10 Finance Committee.doc