7.0. EDSR 05-10-2004 - Laserfiche WebLink

Home Browse Search

• City of Elk River TO: EDA Finance Committee NDUM A CC: Lori Johnson, Finance Director FROM: Heidi Steinmetz, P Assistant Director of Economic Development DATE: May 4, 2004 SUBJECT: Micro Loan Application: Display Solutions, Inc. Attachments Issue • City of Elk River Micro Loan Fund Policy • Application—Display Solutions, Inc.,including the following attachments: o Business Plan o Resumes of owners/management 11°. o Personal Financial Statements of owners/management o Commitment letter from applicant Owners of Display Solutions, Inc.,Tom Buchta,Bob Michalek and Jim Studee have submitted the attached application for a Supplemental Micro Loan in the amount of$50,000 to be used for the purchase of equipment. The loan is proposed to be structured as a participation loan that would require a .5% servicing fee with American National Bank in Elk River. Steve King of American National Bank will be present at the meeting but will abstain from the Finance Committee's discussion to determine a recommendation to the EDA. Mr. King became a member of the Finance Committee in January 2004. Background Display Solutions is a start-up manufacturer of two product lines: store fixtures and point- of-purchase displays. The company's target market is retail customers with new store openings and/or store remodeling projects. Co-owner Tom Buchta has over twenty-five years experience in the professional woodworking field and has owned and operated a store fixture plant for over nine years. The company has identified 4,500 square feet of lease space in the M &A building (former Ultra Image space) as its manufacturing operation upon financing approvals. The applicant proposes to use the Micro Loan funds to purchase items listed on pages 6 and 7 of the attached business plan. The company has a financing commitment of$150,000