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III. <br /> <br />F/xed; 4 points below abe lowest prime ra:e published m <br /> ~o/~ wkichever is <br />the Wa~ S~eet Journal the day ~e loan is closed, or <br />greater. <br /> <br />TeL'lTl: <br /> <br />Financing wir_h a balloon payment in up to 5-years. Loans may be <br />amozts, zed up to t_he £ollow4ng lirmts: <br /> 15-years on real estate uses; <br /> 10-years on equipment uses. <br /> <br />Extension: <br /> <br />In the event that d2e Borrower is unable to obtain conventional <br />financing to replace the Micro Loan at r2:e end of' five years, tAe loan <br />may be extended up to rwo additional years at a market rate of <br />interest. <br /> <br />Criteria: <br /> <br />1. Borrower must be an industrial firm and create one new <br />full-dine job for each $20,000 loaned within 2 years. Said jobs must <br />pay a miniznum wage of $10.00 per hour plus benefits. Loans in excess <br />of $75,000 sba21 meet the City's Business Subsidy Policy for new job <br />and wage goals, as well as location requirements. <br /> <br />2. Borrower must locate in the West Business Park (see attached <br />map) and comply with the provisions of the city's industrial and <br />business park zoning ordinances. <br /> <br />USES <br /> <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 rrm25mum of 50% of the space pre-leased <br /> <br />2. Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of residentSal un.its <br /> b. Working capital <br /> c. Refinancing of e:cisting debt <br /> d. Inventory <br /> <br />IV. <br /> <br />BUSINESSES ELIGIBILITY <br /> <br />Any project meeting t_he above criteria, and located or proposed to be located within <br />the city. limits of Elk River as de£med by this prog~:am, may be eti~ble for an <br />Economic Development Micro Loan as ~rther defined herein: <br /> <br />Elk River Economic Development Authonw, <br />Miczo Loan Fund Policy & Gmdelines <br /> <br />Page .t of 8 <br /> <br /> <br />