5. EDSR 07-15-2013 - Laserfiche WebLink

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• The loans will be secured by personal and corporate guarantees, and if applicable a lien on equipment financed and subordinate mortgage on the property. • Borrower must be an industrial or high technology firm and create or retain one new full-time job for each $20,000 loaned within 2 years. Said jobs must pay a minimum wage of$10.00 per hour excluding benefits required by law. Loans of$75,000 or more shall meet the City of Elk River Business Subsidy Policy for the creation of new jobs at a minimum wage of$15.00 per hour excluding benefits required by law,as well as a 5-year location requirement. Preferred Powder Coating • Amount requested: $100,000 • Rate requested: Fixed at 3% • Equity proposed: $391,817 • Term: 10-year amortization, 5 year balloon • The EDA will obtain a subordinate position mortgage on building and property, subordinate position on equipment, and a personal guarantee. • The borrower will create a minimum of 8 jobs and retain 24 jobs. They are required to create or retain five jobs. They plan to pay$15 per hour for each job. The business subsidy agreement will require a five-year location requirement. The EDA will consider the Finance Committee's recommendation at their July 15 meeting. If recommending approval, the following terms and conditions will apply: Participation Loan: First National Bank of Elk River Loan Amount: $100,000 Interest Rate: 3% fixed Term: 10-year amortization, 5-year balloon Security: Subordinate position mortgage on building and property, subordinate position on equipment, and a personal guaranty. ATTACHMENTS • Microloan Policy and Guidelines • Micro Loan Application and applicable attachments N:\Departments\Community Development\Economic Development\EDA to move\Agenda\Year2013\7-15-2013\5 at 2 Preferred Powder EDA Finance RFA 6-20-2013(2).docx