8.0. EDSR 12-10-2001 - Laserfiche WebLink

Home Browse Search

MN Fabrication&Machine,Inc.Micro Loan Fund Application Finance Committee—Nov.5,2001 Page 2 of 2 employees. Within 2-years the applicant proposes to create 9 machinist positions with an • average wage of$10.00/hour. The project is being financed through the First National Bank of Elk River according to the attached terms. The sources of funds are as follows: First National Bank $500,000 EDA Loan $ 50,000 Total $550,000 The applicant has proposed that the EDA take a second position on the real estate mortgage,which has a recent appraised value of$550,000. In addition to the financial criteria that must be considered, the committee must also consider to what degree the applicant satisfies the criteria set forth in the attached Micro Loan Fund policies. Micro Loan Criteria MN Fabrication&Machine * Max. Loan Amount: $50,000 *Amount requested: $50,000 * Interest Rate: 1 below prime * Rate requested: 1 below prime * Equity to EDA Loan ratio of 1:1 * Equity to EDA Loan ratio of 10:1 * 1 job created per $20,000 loaned * 1 job created per$5555 loaned * Min. average wage of$8 per hour *Average wage of$10 per hour • Per the Micro Loan Fund policy, all buildings which receive public funds for construction or renovation require the building be brought into conformance with city codes and policies. Staff recommends that the micro loan be contingent on the following items: • Outline and estimate of remodeling costs • An approved building permit including code related improvements • Copy of invoices and/or sworn construction statement upon completion of the work • Require to hookup to City services in Twin Lakes Road As in past Micro Loan meetings, the applicant will be given an opportunity to present the project and application. Following the presentation the Finance Committee may ask questions of the applicant. The applicant will then be excused from the meeting, allowing the committee to discuss the application and determine a recommendation for EDA Board consideration. Attachments • City of Elk River Micro Loan Fund Policy • Application—MN Fabrication &Machine, Inc. • Business Plan—HMP Corporation (holding company of IHI, MF&M, and ProCom) • 1999 &2000 Financial Statements (Industrial Hardfacing) • Current Financial Statements (IHI, HMP, ProCom) • • 2002 &2003 Projections (HMP, IHI, MF&M, ProCom) • Letter of Commitment from First National Bank of Elk River • 1999 Corporate Tax Return (IHI)