6.2 EDSR 02-17-2015 - Laserfiche WebLink

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Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 10% or more of project financing. The applicant provides the minimum 10% ($63,000) as equity contribution. Assuming receipt of the full microloan requested amount of $126,000 (20% of project cost), private-sector financing provides the remaining 80% through debt and equity. 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. Historically, a business moving into Elk River brings ‘new’ jobs. The 8 jobs at opening and 5 additional jobs provides up to $260,000 as qualifying maximum loan amount, subject to other requirements being met. If approved, the loan agreement will reflect the requirement to provide 7 new jobs (7 * $20,000 = $140,000 < $126,000 eligible/ requested) Summary For the $126,000 requested, the application meets the minimum job creation, wage, and financial participation required by Policy. Uses of the funds as proposed are eligible expenses. Attachments  Submitted Application materials  Application 12/17/14  Financial Statements  Summary of projections  Response to preliminary comments 1/14/15  Springsted summary 1/23/15 N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Agenda Packets\2015\2-17-2015\6.2 at3 Distinctive iron Staff 1-27-15.docx