Laserfiche WebLink
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 <br /> Equity: Must match EDA loan with 1:1 ratio. Total loans not to <br /> exceed 90% of project value. <br /> Rate: Fixed; 2 points 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. At a minimum, 20% of Micro Loan dollars must be used <br /> for the improvement of the building's facade. <br /> 2. Borrower must be located in the Central Business <br /> District (see attached map). <br /> • <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 <br /> Equity: Must match EDA loan with a 3:1 ratio. Total loans not to <br /> exceed 90% of project value. <br /> Rate: Fixed; 4 points below the lowest prime rate published in <br /> the Wall Street Journal the day the loan is closed. <br /> Term: Financing up to 5 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 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 average wage of$10 per hour plus benefits. <br /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines Page 3 of 8 <br />