Laserfiche WebLink
ELK RIVER ECONOMIC DEVELOPMENT <br /> MICRO LOAN FUND POLICY & GUIDELINES <br /> • <br /> Revised September 1999 <br /> PURPOSE <br /> The Economic Development Authority for the City of Elk River (EDA) recognizes <br /> the need to stimulate private sector investment into manufacturing facilities and <br /> equipment in order to create new jobs, boost productivity and retain existing jobs for <br /> local residents. Additionally, the need exists to encourage investment in the <br /> expansion and/or rehabilitation of commercial and retail buildings in order to <br /> maintain the economic viability of Elk River's central business district. <br /> Subsequently, the purpose of this program is to provide low interest, long-term (i.e. <br /> greater than one year) loans as incentives for industrial development within the City <br /> of Elk River and to encourage commercial and retail business owners in the central <br /> business district to rehabilitate their existing buildings. <br /> II. LOAN PROGRAMS <br /> In order to meet the economic and community development objectives of the EDA, <br /> three distinct loan programs exist within the Micro Loan Fund to promote business <br /> growth in Elk River. <br /> Supplemental Financing Program <br /> Purpose: The Supplemental Financing Program is designed for industrial firms <br /> • who have maximized their conventional financing and equity <br /> resources and subsequently would be unable to complete a project <br /> 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 <br /> 15-years with a balloon payment. <br /> Refinancing: The loan may be refinanced up to 2 additional years at a <br /> market rate of interest. <br /> 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 average wage of$8 <br /> per hour plus benefits. <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 /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines Page 2 of 8 <br />