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4.3. SR 01-21-2014
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4.3. SR 01-21-2014
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City of Elk River, Minnesota <br /> Sportech, Inc.Application Review <br /> January 15, 2014 <br /> Page 4 <br /> Business Eligibility <br /> In addition to having an eligible project a business must also meet certain criteria before it is deemed eligible to <br /> receive forgivable loan funds. According to the forgivable loan policy, to be eligible for a forgivable loan a business <br /> must meet the following: <br /> 1. Business must be a for-profit corporation, partnership or sole proprietorship; <br /> After reviewing Sportech's application materials the company appears to be a for-profit enterprise. <br /> 2. Business must be a small business as defined by the small business administration; <br /> Based upon the application materials provided by the applicant, the company appears to meet the definition <br /> of a small business as defined by the small business administration. The company appears to meet the <br /> definition of manufacturing as defined by the U.S. Small Business Administration with maximum employees <br /> less than 500 to 7500. <br /> 3. Business must have a positive net worth; <br /> It is important to note that the latest financial statements provided by the company are for the year ending <br /> December 37, 2072 and as such this determination is being made based upon the available information at <br /> that time. Based upon a review of the financial information submitted by the company, Sportech has a <br /> positive net worth as of December 37, 2072, <br /> 4. Business must be an industrial, manufacturing, or technology-based industry; <br /> A review of Sportech's application materials confirms that the company fits into the description of an <br /> industrial, manufacturing, or technology based industry. <br /> 5. Religious, political, casino, sports facilities and pornographic enterprises are not eligible to use the <br /> Economic Development Forgivable Loan Program. <br /> Sportech does not appear to be a religious,political, casino, sports facilities or pornographic enterprise. <br /> Financial Feasibility <br /> According to the forgivable loan program guidelines the financial feasibility criterion are meant to assess availability of <br /> funds, private involvement,financial packaging and cost effectiveness. These criteria are: <br /> 1. Appropriate ratio of private funds to forgivable loan funds <br />
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