6.3. SR 06-21-2004 - Laserfiche WebLink

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g3ver TO: FROM: DATE: SUBJECT: MEMOllANDUM Economic Development Authority Heidi Steinmetz, Assistant Director of Economic Development June 14, 2004 Consider Micro Loan Fund Policy Amendments and Micro Loan Application: Badger Ventures, LLC (Gradient Technology) Attachments · City of Elk River Micro Loan Fund Policy · Finance Committee Minutes & Staff Memos o June 1,2004 o June 9, 2004 · Applicahon - Badger Ventures, LLC (Gradient Technology) Issue On June 1 and June 9, 2004, the Finance Committee reviewed the attached Micro Loan Fund Policy regarding the criteria for the Industrial Incentive Program. Su~ested Micro Loan Policy Amendments · Eliminate the Supplemental Micro Loan Program · All Micro Loans be consummated via a bank participation loan · Add to the bank participation loan agreement and the Business Subsidy Agreement o "If Borrower defaults on the loan, the City will collect based on a pro-rata basis with the participating bank" o "If Borrower does not meet the job and wage goals specified in the Subsidy Agreement, the interest rate will change to 2 points above the participating bank's rate, effective from the two year anniversary of the loan closing. Upon subsequent achievement of the jobs and wage goals, the interest rate will revert back to the rate when the loan was originated, effective from the date of attainment of the job and wage goals" · Amend the following Industrial Incentive Program Criteria: o Amount: Eliminate "Up to $100,000 of secondary financing not to exceed 40% of the project cost" and change to "up to $100,000 of secondary financing not to exceed 20% of the project cost" o Rate: Eliminate "4 points below the lowest prime rate published..."and change to "2 points below the lowest prime rate published in the Wall Street Journal the day the loan is closed, or 3 % whichever is greater"