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Criteria: Borrower must be an industrial or high technology firm and create or <br />retain one new full-time job for each $20,000 loaned within 2 years. <br />Said jobs must pay a minimum wage of $10.00 per hour excluding <br />benefits required by law. Loans of $75,000 or more shall meet the City <br />of Elk River Business Subsidy Policy for the creation of new jobs at a <br />minimum wage of $15.00 per hour excluding benefits required by law, <br />as well as a 5-year location requirement. <br />In the case where the multiple sources of public financing are requested <br />(e.g. Micro Loan and Tax Increment Financing) job creation goals shall <br />not be double-counted. <br />Borrower must comply with the provisions of the city's Industrial and <br />Business Park zoning ordinances as applicable. <br />Downtown Revitalization Financing Program <br />Purpose: The Downtown Revitalization Financing Program is available to <br />business and property owners in the Downtown District (DD) <br />primarily for the rehabilitation and restoration of older buildings, as <br />well as new business development. <br />Amount: Up to $74,999 of secondary financing not to exceed 40% of the <br />project cost. <br />Equity: Must have private-sector commitments for 50% of the project cost. <br />Borrower must provide 10% or more of project financing. <br />Rate: Fixed at 2%. <br />Term: Financing with a balloon payment in up to 5-years. Loans may be <br />amortized up to the following limits: <br />20-years on real estate uses; <br />10-years on equipment uses. <br />Extension: In the event that the Borrower is unable to obtain conventional <br />financing to replace the Micro Loan at the end of five years, the loan <br />may be extended up to two additional years at a market rate of <br />interest. <br />Criteria: At a minimum, 20% of Micro Loan dollars must be used for the <br />improvement of the building facades, with exceptions to be <br />considered by the Finance Committee. Financing of leasehold <br />improvements will be considered at a limit of $25,000. <br />Borrower must be located in the Downtown District (DD). <br />Loans must be supported by sufficient collateral, which may include <br />personal assets and guarantees. <br />Micro Loan Fund Policy & Guidelines Page 3 of 15 <br />Amended May 2011 <br />