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Criteria: 1. Borrower must create one new full-time job for each $20,000 loaned <br /> within two years. Said jobs must pay a minimum wage of$9.00 per <br /> hour plus benefits. Borrower will also be required to meet certain <br /> provisions of the City's Business Subsidy Policy. <br /> 2. Borrower must be an industrial firm and comply with the provisions <br /> of the city's industrial 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 /> /11111 amortized up to the following limits: <br /> 15-years on real estate uses; <br /> 10-years on equipment uses. <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 /> Industrial Incentive Program <br /> Purpose: The purpose of the Industrial Incentive Program is to encourage <br /> industrial development that supports the tax base and brings quality <br /> jobs to the city. <br /> Amount: Up to $100,000 of secondary financing (not to exceed 40% of the <br /> project cost. <br /> rEquity: have private-sector commitments.for 50% of the project cost. <br /> Borrower to provide 10% or more of project financing. <br /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines Page 3 of 8 <br />