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Car o+ <br /> El _ Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority Finance Committee 4.1 <br /> Agenda Section Meeting Date Prepared by <br /> General Business June 23, 2014 Brian Beeman, Directory of Economic <br /> Development <br /> Item Description Reviewed by <br /> Jobs Incentive Program - Microloan Jeremy Barnhart, Deputy Director,CODD <br /> Reviewed by <br /> Action Requested <br /> Consider terms for a fourth Micro Loan application policy and make recommendation to the EDA. <br /> Background/Discussion <br /> At the June 9,2014 meeting,the EDA finance committee reviewed a draft of the proposed Jobs <br /> Incentive Program, and identified changes to be incorporated by staff. Those changes have been <br /> completed and the draft is presented for formal recommendation to the EDA. <br /> With EDA support, the policy will be sent to DEED for their review. <br /> The proposed 4th microloan will allow more flexibility and increase the dollar amount up to $200,000 of <br /> secondary financing not to exceed 20% of the project cost while requiring wages at a minimum of$15.00 <br /> per hour and job goals.Terms will be set with a 5 year balloon and may be amortized up to 20 years on <br /> real estate uses and 5 years on equipment. The borrower must create one new full-time job for each <br /> $20,000 loaned and retain one new full-time job for each 510,000 loaned within 2 years. There is a 5 year <br /> location requirement and job creation goals shall not be double-counted in the case where multiple <br /> sources of public financing are requested. (e.g. Microloan and Tax Increment Financing). Funds may be <br /> used for relocation costs with the greater of$25,000 or 20% of total project costs. Costs may also include <br /> actual incurred city fees associated with the construction and/or development costs of the project and <br /> outstanding or pending assessment on properties where a business is to be located. <br /> This 4th microloan, though funded from a secondary source,will be incorporated administratively into the <br /> existing microloan policies. This is intended to ease administrative effort and increase clarity for the <br /> ultimate end user. <br /> Financial Impact <br /> None. <br /> Attachments <br /> • Jobs Incentive Program draft Policy <br /> • June 9,2014 Finance Committee Staff Report <br /> 1 1-0 1 1 1 1 1 1 1 1 1 1 <br /> NAtURE <br />