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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 façades,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 />