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• ELK RIVER ECONOMIC DEVELOPMENT <br /> MICRO LOAN FUND POLICIES & GUIDELINES <br /> Revised September 1999 <br /> City of Elk River Economic Development Authority <br /> 13065 Orono Parkway, P.O. Box 490 <br /> Elk River, MN 55330 <br /> (612) 441-7420 <br /> PURPOSE <br /> The Economic Development Authority for the City of Elk River (EDA) <br /> recognizes the need to stimulate private sector investment into <br /> manufacturing facilities and equipment in order to create new jobs, <br /> boost productivity and retain existing jobs for local residents. <br /> Additionally, the need exists to encourage investment in the expansion <br /> and/or rehabilitation of commercial and retail buildings in order to <br /> maintain the economic viability of Elk River's central business <br /> districts. Subsequently, the purpose of this program is to provide low <br /> interest, long term (i.e. greater than one year.) loans as incentives for <br /> industrial development within the City of Elk River and to encourage <br /> • commercial and retail business owners in the central business district <br /> to rehabilitate their existing buildings. <br /> II. LOAN PROGRAMS <br /> In order to meet the economic and community development objectives <br /> of the EDA, three distinct loan programs exist within the Micro Loan <br /> Fund to promote business growth in Elk River. <br /> Supplemental Financing Program <br /> Purpose: The Supplemental Financing Program is designed <br /> industrial firms who have maximized their conventional <br /> financing and equity resources and subsequently would be <br /> unable to complete a project without EDA assistance. <br /> Amount: Up to $50,000 <br /> Equity: Must match EDA loan with 1:1 ratio. Total loans not to <br /> exceed 90% of project value. <br /> Rate: Fixed; 1 point below the lowest prime rate published in <br /> the Wall Street Journal the day the loan is closed. <br /> • Term: Financing up to 3 years. Loans may be amortized up to 15 <br />