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City of Elk River, Minnesota <br />Stonesthrow Companies, LLC and Coin-Tainer Co., LLC Microloan Fund Application Review <br />December 15, 2014 <br />Page 4 <br />Business must be a small business as defined by the small busine The applicant meets the <br />definition of a small business, as defined by the small business <br />Business must have a positive net worth: The most recent full year’s financial statements provided by the <br />company are for the year ending December 31, 2013 with partial y <br />such this determination is being made based upon the available i <br />information submitted by the company, the applicant had a positive net worth in December of 2012, a negative net <br />worth as of December 31, 2013, and a positive net worth as of Oc <br />Business must be an industrial, manufacturing, or technology-based industry: A review of the application <br />materials confirms that the company fits into the description of <br />industry. <br />Religious, political, casino, sports facilities and pornographic enterprises are not eligible to use the Economic <br />Development Forgivable Loan Program: The applicant is not a religious, political, casino, sports facilities or <br />pornographic enterprise. <br />5. Microloan Fund Terms & Conditions (Page 7 of Policy) <br />To be determined if loan terms approved by the EDA. <br />6. Regulation for New Construction and Improvements (Page 7 of <br />To be regulated if funding is approved and determined to be used <br />7. Loan Security and Guarantee Requirements (Page 8 of Policy) <br />The City’s Economic Development Microloan Fund policy states that prior to the City granting a loan to a proposed <br />business, that the proposed project must meet certain loan security requirements. These requirements are: <br />Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate mortgage <br />upon the building and/or assets or other approved collateral:According to the applicant, the EDA is welcome to <br />a second mortgage after the building is purchased by Stonesthrow <br />microloan funds are being used as a down payment to begin the co <br />Applicant must demonstrate the financial means to repay the loans, as determined by the Economic <br />Development Authority: The property cash flows as is, fully rented, and the applicant a <br />remain fully leased providing sufficient cash flow to repay the <br />