8. EDSR 06-17-2013 - Laserfiche WebLink

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Brehmer, a requirement of the Energy Efficient Microloan. Any rebates received will be assigned to the Elk River EDA and applied toward principal repayment of the loan. 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- Energy Efficiency Improvement Program • Max. Loan Amount: $74,999 • Interest rate: Fixed at 3% • Equity:10% or more of project • Term: The maximum maturity date will be determined by the useful life of the improvement and the energy payback achieved. For projects that have a shorter length of payback (2-5) years as calculated according to energy savings, the loans will have an initial maturity of up to 5 years from the date of closing. Longer life improvements (6-15 years) may apply for a longer maturity of up to 10 years. • The loans will be secured by personal and corporate guarantees, and if applicable a lien on equipment financed and subordinate mortgage on the property. • 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. Ralphie's Victory Lane • Amount requested: $74,999 • Rate requested: Fixed at 3% • Equity proposed: $120,000 • Term: 10-year amortization • The EDA will obtain a subordinate position mortgage on 13374 U.S. Highway 10, subordinate position on all inventory and equipment, and a personal guarantee. The EDA will consider the Finance Committee's recommendation at their June 17 meeting. If recommending approval, the following terms and conditions will apply: Participation Loan: Farmers State Bank,The Bank of Elk River Loan Amount: $74,999 Interest Rate: 3% fixed Term: 10-year amortization Security: Subordinate position mortgage on 13374 U.S. Highway 10, subordinate position on all inventory and equipment, and a personal guaranty. ATTACHMENTS • Microloan Policy and Guidelines • Micro Loan Application and applicable attachments • Location Map N:\Departments\Community Development\Economic Development EDA to move\Agenda\Year2013\6-17-2013\Ralphy's Victory Lane EDA Finance RFA 6-6-2013(2).docx