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Extension: In the event that the Borrower is unable to obtain conventional <br /> financing to replace the Micro Loan at the end of five years, the loan <br /> • may be extended up to two additional years at a market rate of <br /> interest. <br /> Criteria: 1. Borrower must be an industrial firm and create one new <br /> full-time job for each $20,000 loaned within 2 years. Said jobs must <br /> pay a minimum wage of$10.00 per hour plus benefits. Loans in excess <br /> of$75,000 shall meet the City's Business Subsidy Policy for new job <br /> and wage goals, as well as location requirements. <br /> 2. Borrower must comply with the provisions of the city's industrial <br /> and business park zoning ordinances. <br /> Redevelopment Financing Program <br /> Purpose: The Redevelopment Financing Program is available to business and <br /> property owners in the central business district (CBD) for the <br /> rehabilitation and restoration of their buildings. <br /> Amount: Up to $50,000 of secondary financing (not to exceed 40% of the <br /> project cost. <br /> Equity: Must have private-sector commitments for 50% of the project cost. <br /> Borrower to provide 10% or more of project financing. <br /> • Rate: Fixed; 2 points below the lowest prime rate published in the <br /> Wall Street Journal the day the loan is closed, or 2%,whichever is <br /> greater. <br /> Term: Financing with a balloon payment in up to 3-years. Loans may be <br /> amortized up to the following limits: <br /> 15-years on real estate uses; <br /> 10-years on equipment uses. <br /> • <br /> Extension: In the event that the Borrower is unable to obtain conventional <br /> financing to replace the Micro Loan at the end of three years, the <br /> loan may be extended up to two additional years at a market rate of <br /> interest. <br /> Criteria: 1. At a minimum, 20% of Micro Loan dollars must be used for the <br /> improvement of the building's facade. <br /> 2. Borrower must be located in the Central Business District <br /> (see attached map). <br /> III. USES <br /> 1. Permitted Fund Uses: <br /> a. Building construction <br /> b. Land acquisition <br /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines <br /> Revised June 2004 Page 3 of 8 <br />