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Micro Loan Fund Policy Guidelines Page 3 <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 15 <br /> 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 <br /> jobs must pay a minimum average wage of$10 per hour <br /> plus benefits. <br /> 2. Borrower must locate in the West Business Park and <br /> comply with the provisions of the city's industrial and <br /> business park zoning ordinances. <br /> III. USES <br /> • 1. Permitted Fund Uses: <br /> a. Building construction <br /> b. Land acquisition <br /> c. Machinery <br /> d. Furniture, fixtures, and equipment (FF&E) <br /> e. Renovation and modernization of buildings <br /> f. Exterior renovation of retail, commercial and industrial <br /> buildings <br /> g. Public infrastructure needed for economic development <br /> expansions <br /> 2. Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of <br /> residential units <br /> b. Working capital <br /> c. Refinancing of existing debt <br /> d. Inventory <br /> IV. BUSINESSES ELIGIBILITY <br /> Any project meeting the above criteria, and located or proposed to be <br /> located within the city limits of Elk River, may be eligible for an <br /> • Economic Development Micro Loan. <br /> 3 <br />