7.3. SR 12-15-2014 - Laserfiche WebLink

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City of Elk River, Minnesota Stonesthrow Companies, LLC and Coin-Tainer Co., LLC Microloan Fund Application Review December 15, 2014 Page 4 Business must be a small business as defined by the small business administration: The applicant meets the definition of a small business, as defined by the small business administration. Business must have a positive net worth: The most recent full year's financial statements provided by the company are for the year ending December 37, 2073 with partial year information provided through October 2074. As such this determination is being made based upon the available information. Based upon a review of the financial information submitted by the company, the applicant had a positive net worth in December of 2072, a negative net worth as of December 37, 2073, and a positive net worth as of October 2074. Business must be an industrial, manufacturing, or technology-based industry: A review of the application materials confirms that the company fits into the description of an industrial, manufacturing, or technology based industry. Religious, political, casino, sports facilities and pornographic enterprises are not eligible to use the Economic Development Forgivable Loan Program: The applicant is not a religious, political, casino, sports facilities or pornographic enterprise. 5. Microloan Fund Terms & Conditions (Page 7 of Policy) To be determined if loan terms approved by the EDA. 6. Regulation for New Construction and Improvements (Page 7 of Policy) To be regulated if funding is approved and determined to be used for any improvements of the existing building. 7. Loan Security and Guarantee Requirements (Page 8 of Policy) The City's Economic Development Microloan Fund policy states that prior to the City granting a loan to a proposed business, that the proposed project must meet certain loan security requirements. These requirements are: Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate mortgage upon the building and/or assets or other approved collateral: According to the applicant, the EDA is welcome to a second mortgage after the building is purchased by Stonesthrow Companies, LLC on a contract for deed. The microloan funds are being used as a down payment to begin the contract for deed. Applicant must demonstrate the financial means to repay the loans, as determined by the Economic Development Authority: The property cash flows as is, fully rented, and the applicant anticipates the building will remain fully leased providing sufficient cash flow to repay the loan.