6.3 EDSR 07-20-2015 - Laserfiche WebLink

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The total project cost is $2,380,545.The $200,000 requested is 8.4% of the total project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower must provide 10% or more of project financing. The applicant provides 21% ($500,000) as equity contribution. Assuming receipt of the full microloan requested amount of$200,000 (8.4% of project cost),private-sector financing provides the remaining 70.6% through debt. 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 two years and be retained for the period of the loan. Said jobs must pay greater of$15 per hour or 150%of state or federal minimum wage,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. A combination of 8 FTE jobs upon completion and 13 retained jobs provides up to $290,000 as qualifying maximum loan amount, subject to other requirements being met. If approved, the loan agreement will reflect the requirement to provide 8 new jobs and 4 retained jobs (8 *$20,000 = $160,000) and (4 *$10,000 = $40,000) Summary For the $200,000 requested, the application meets the minimum job creation,wage, and financial participation required by Policy. Uses of the funds as proposed are eligible expenses. Click here to enter financial impact. Attachments • Springsted Analysis (June 23, 2015) • Jobs Incentive Microloan Application • Microloan Agreement • Entity Guarantee • Personal Guarantee • Security Agreement • Mortgage • Promissory Note