6.1 EDSR 07-21-2014 - Laserfiche WebLink

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City of Elk River Microloan Fund Jobs Incentive Program Purpose: To assist existing businesses with expansion and attract new businesses to the City whose local operations will help expand the City's economy through job retention and creation and maintain/grow the City's tax base. The purpose of the Jobs Incentive Program is to encourage the creation of high paying and quality jobs to the city. Amount: Up to $200,000 of secondary financing not to exceed 20% of the project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 10% or more of project financing. Rate: Fixed at 2%. Term: Financing with a balloon payment in up to 5-years. Loans may be amortized up to the following limits: 20 years on real estate uses; 5 years on equipment uses. Extension: The loan term of 5 years may be extended by up to two additional years with approval from the EDA and City Council. Criteria: Borrower must create one new full-time job for each $20,000 loaned,retain one new full-time job for each $10,000 loaned, or combination of retainage and creation to meet the requirements. All new jobs must be created within 2 years and retained for the period of the loan. Said jobs must pay greater of$15.00 per hour or 150% of state or federal minimum wage,whichever is greater, exclusive of benefits required by law. Any loans shall meet the city of Elk River Business Subsidy Policy for the creation of new jobs, as well as a 5-year location requirement. In the case where multiple sources of public financing are requested (e.g. Microloan and Tax Increment Financing) job creation goals shall not be double-counted. Eligible Costs: Funds may be used by the borrower for costs related to job creation and retention as a result of the project as defined in the City's Microloan Fund Policy. Eligible costs may include relocation costs that equal the lesser of $25,000 or 20% of total loan amount. Costs may also include actual incurred City fees associated with construction and/or development costs of the project and outstanding or pending assessments on properties where a business is to be located.