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Micro Loan Criteria- Energy Efficiency Improvement Program <br /> • Max. Loan Amount: $74,999 <br /> • Interest rate: Fixed at 3% or 2 below prime,whichever is greater <br /> • Equity: 10% or more of project <br /> • Term: The maximum maturity date will be determined by the useful life of the improvement and the <br /> energy payback achieved. For projects that have a shorter length of payback (2-5) years as calculated <br /> according to energy savings, the loans will have an initial maturity of up to 5 years from the date of <br /> closing. Longer life improvements (6-15 years) may apply for a longer maturity of up to 10 years. <br /> • Improvements must be eligible as outlined in Micro Loan Policy or as approved by applicable utility <br /> provider <br /> • Utility rebates as applicable will be assigned to the Elk River EDA and applied toward principal <br /> repayment of the loan <br /> • The loans will be secured by personal and corporate guarantees, and if applicable a lien on equipment <br /> financed and subordinate mortgage on the property <br /> • Exempt from job creation and wage goals because the loan amount does not exceed$150,000 and <br /> does not qualify as a business subsidy by state law <br /> P.S...Dance Studio <br /> • Amount requested: $28,000 ($12,000 electrical, $16,000 HVAC) <br /> • Rate requested: Fixed at 3% <br /> • Equity proposed: $35,000 <br /> • Term: 7-year amortization/5-year balloon <br /> • Improvements include electrical system upgrading and HVAC improvements <br /> • Improvements for lighting and HVAC system improvements are eligible for rebates. Rebates will be <br /> applied to principle of loan <br /> • The EDA will obtain a second position on the mortgage of 251 8th St NW and secure a personal <br /> guaranty <br /> The EDA will consider the Finance Committee's recommendation at their August 13 meeting. <br /> If recommending approval, the following terms and conditions will apply: <br /> Participation Loan: Not Applicable <br /> Loan Amount: $28,000 <br /> Interest Rate: 3% fixed <br /> Term: 7-year amortization/5-year balloon <br /> Security: Second position mortgage on 251 8th ST NW,personal guaranty <br /> ATTACHMENTS <br /> • Site map <br /> • Micro Loan Application <br /> • Business Plan <br /> Action Motion by Second by Vote <br /> Follow Up <br />