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Rate: Fixed;4 points below the lowest prime rate published in <br /> 410 the 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 5-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 /> 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 locate in the West Business Park (see attached <br /> map)and comply with the provisions of the city's industrial and <br /> business park zoning ordinances. <br /> 0 III. USES <br /> 1. Permitted Fund Uses: <br /> a. Building construction <br /> b. Land acquisition <br /> c. Machinery <br /> d. Furniture, fixtures, and equipment (FF&E) <br /> e. Renovation and modernization of buildings <br /> f. Exterior renovation of retail, commercial and industrial buildings <br /> g. Public infrastructure needed for economic development expansions <br /> h. Investment real estate with a minimum of 50% of the space pre-leased <br /> 2. Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of residential units <br /> b. Working capital <br /> c. Refinancing of existing debt <br /> d. Inventory <br /> IV. BUSINESSES ELIGIBILITY <br /> Any project meeting the above criteria, and located or proposed to be located within <br /> ill the city limits of Elk River as defined by this program, may be eligible for an <br /> Economic Development Micro Loan as further defined herein: <br /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines Page 4 of 8 <br />