5.0. 6.0. 7.0. 8.0. EDSR 09-13-1999

Home Browse Search

• REVISED ELK RIVER ECONOMIC DEVELOPMENT MICRO LOAN FUND POLICIES & GUIDELINES City of Elk River Economic Development Authority 13065 Orono Parkway, P.O. Box 490 Elk River, MN 55330 (612) 441-7420 PURPOSE The Economic Development Authority for the City of Elk River (EDA) recognizes the need to stimulate private sector investment into manufacturing facilities and equipment in order to create new jobs, boost productivity and retain existing jobs for local residents. Additionally, the need exists to encourage investment in the expansion and/or rehabilitation of commercial and retail buildings in order to maintain the economic viability of Elk River's central business districts. Subsequently, the purpose of this program is to provide low interest, long term (i.e. greater than one year.) loans as incentives for industrial development within the City of Elk River and to encourage commercial and retail business owners in the central business district IP to rehabilitate their existing buildings. II. LOAN PROGRAMS In order to meet the economic and community development objectives of the EDA, three distinct loan programs exist within the Micro Loan Fund to promote business growth in Elk River. Supplemental Financing Program Purpose: The Supplemental Financing Program is designed industrial firms who have maximized their conventional financing and equity resources and subsequently would be unable to complete a project without EDA assistance. Amount: Up to $50,000 Equity: Must match EDA loan with 1:1 ratio. Total loans not to exceed 90% of project value. Rate: Fixed; 1 point below the lowest prime rate published in the Wall Street Journal the day the loan is closed. • Term: Financing up to 3 years. Loans may be amortized up to 15 years with a balloon payment.