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Term: Financing with a balloon payment in up to 5-years. Loans may be <br /> amortized up to the following limits: <br /> 20 years on real estate uses; <br /> 5 years on equipment uses. <br /> Extension: The loan term of 5 years may be extended by up to two additional <br /> years with approval from the EDA and City Council. <br /> Criteria: Borrower must create one new full-time job for each$20,000 loaned, <br /> retain one new full-time job for each$10,000 loaned, or combination <br /> of retainage and creation to meet the requirements. All new jobs must <br /> be created within 2 years and retained for the period of the loan. Said <br /> jobs must pay greater of$15.00 per hour or 150% of state or federal <br /> minimum wage,whichever is greater, exclusive of benefits required by <br /> law. Any loans shall meet the city of Elk River Business Subsidy Policy <br /> for the creation of new jobs, as well as a 5-year location requirement. <br /> In the case where multiple sources of public financing are requested <br /> (e.g. Microloan and Tax Increment Financing) job creation goals shall <br /> not be double-counted. <br /> Eligible Costs: Funds may be used by the borrower for costs related to job creation <br /> and retention as a result of the project as defined in the City's <br /> Microloan Fund Policy. Eligible costs may include relocation costs that <br /> equal the lesser of$25,000 or 20% of total loan amount. Costs may <br /> also include actual incurred City fees associated with construction <br /> and/or development costs of the project and outstanding or pending <br /> assessments on properties where a business is to be located. In no <br /> circumstance may-jobs Incentive Ffunds be used for restaurants,retail <br /> businesses, casinos, or sports facilities. <br /> 3. USES <br /> 1. Permitted Fund Uses: <br /> a. Building construction <br /> b. Land acquisition <br /> c. Machinery <br /> d. Furniture, fixtures, and equipment (FF&E) <br /> e. Renovation and modernization of buildings <br /> f. Exterior renovation of retail, commercial and industrial buildings <br /> g. Public infrastructure needed for economic development expansions <br /> h. Investment real estate with a minimum of 50% of the space pre-leased <br /> 2. Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of residential units <br /> b. Working capital <br /> c. Refinancing of existing debt <br /> P 0 W E R E 0 0 V <br /> Page 6 of 18 INAMPE1 <br />