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ilk coot REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Finance Committee 3 <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> August 2,2012 Annie Deckert,Director of Economic <br /> Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Executive Director's Report Cal Portner,City Administrator <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> None. <br /> BACKGROUND/DISCUSSION <br /> The purpose of this item is to provide an update of the Micro Loan Program to the Finance Committee. <br /> In February 2011,the city entered into an agreement structured by First National Bank of Elk River with <br /> Ethanol Technologies of Minnesota on their participation loan. Per the agreement,the borrower agrees <br /> to make seasonal payments on the loan. Because this is a participation loan with First National Bank and <br /> we do not receive the payments, this information is not reflected on the attached Micro Loan summary <br /> sheet. <br /> In November 2011,Nicole Fox,owner of Nicole's Salon,closed her business. Staff has been informed <br /> that Ms. Fox has filed for bankruptcy and it has been discharged. The balance on her loan is $6,894.28. <br /> Staff is working with the city attorney to determine any further action;however discussions to this point <br /> indicate the city no longer has any rights or remedies to collect payment. <br /> The current cash balance of the Micro Loan fund is $1,319,451.08,with$276,222.96 in notes receivable. <br /> The$50,000 deposit receivable is through our partnership with the Minnesota Community Capital Fund <br /> (MCCF). The MCCF is a nonprofit corporation that leverages funds through pooling resources and <br /> provides its members with greater flexibility and the capability of offering larger loans to small businesses. <br /> Staff recently held an educational lunch program with local lenders to discuss the programs the MCCF <br /> offers. <br /> Staff continues to heavily market the Micro Loan Program through various marketing materials, social <br /> media outlets, trade shows and direct mails. Additionally,the city's vision and goals identify the following <br /> goals: <br /> • Innovation-develop new programs and services to meet the needs of the community <br /> • Opportunities- foster a pro-business atmosphere that provides incentives and other opportunities <br /> for new and existing business growth <br /> rOWERED J <br /> N:\Departments\Community Development\Economic Development\Micro Loan Fund\Finance <br /> Committee\2012\Executive Director's Report.docx NATURE <br />