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EDA Finance Committee Meeting <br /> April 29,2003 <br /> Page 2 of 2 <br /> • • The loan has an interest rate of 7.75%. The Micro Loan Fund policy allows for a <br /> 2-year extension at a market rate of interest. It was the consensus of the Committee <br /> that the extension period maintains the original interest rate of 7.75%in recognition <br /> that the company,which applied for the loan,is now relocating. Committee <br /> members indicated that while it is valuable for the building to be made available for <br /> light industrial tenants, the loan application was directly tied to the business growth <br /> of Ultra Image Powder Coating in Elk River. <br /> • Committee members suggested that staff consider an increase adjustment to the <br /> monthly repayment amount on the loan. The current monthly payment is $473.33. <br /> A monthly payment amount of$650.00 was suggested depended on the owner's <br /> sufficient ability to cash flow the project. <br /> Following the discussion,it was the consensus of the Finance Committee to recommend <br /> that the EDA approve a 2-year extension of the Micro Loan to M&A Investments,L.L.C. <br /> with the following conditions: <br /> • M&A Investments,L.L.C. to guarantee, on behalf of tenants, that the original Micro <br /> Loan job creations goals of 8 full-time equivalent positions at a minimum wage of <br /> $9.00 per hour, exclusive of benefits, are maintained over the 2-year extension <br /> period. Job and wage status would be certified annually upon request by the <br /> Economic Development Department staff. <br /> • • Interest rate of 7.75% be continued and EDA staff to consider an increase <br /> adjustment to the monthly repayment schedule. <br /> Hearing no other business the meeting was adjourned at 6:30 p.m. <br /> Catherine Mehelich <br /> Director of Economic Development <br /> • <br />