5.0. 6.0. 7.0. EDSR 08-10-1998 - Laserfiche WebLink

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Business Development Fund Guidelines, p. 4, 7/30/98 Application Guidelines • Eligibility Guidelines The business must be located in,or proposing to locate in Sherburne County. The eligible firm must be a manufacturing or warehouse/distribution business. The project must create jobs or iniptove/retain jobs paying the minimum amount required by the State for its economic development programs(i.e. currently $8.01/hour). A minimum of one job per$30,000 of funds borrowed must be created/retained within three years of the loan. These wage and job goals will be monitored by the County economic development staffpet son. Arutually every January,a simple report will be sent to borrowers to collect wage and job data for comparison to their wage and job goals. If this requirement is not fulfilled the interest rate on the loan will revert to market rate. The Loan Agreement will be made a tri-party agreement between the lender,the borrower,and the County. The interest rate for the loan will increase 2 percentage points if the wage and job guidelines are not met within 3 years. Equal consideration will be given to both existing business expansion and businesses newly locating in the County. A portion of the program may be targeted at businesses locating in Sherburne County from outside the County. Loan Uses Loan proceeds must be used for real estate,including new construction or expansion of existing facilities, and/or equipment purchases. Working capital financing and refinancing of existing debt is not eligible. Funds arc for owner-occupied business buildings,not real estate investment. 411 Loan Terms Loans can be made for amounts between$100,000 to$500,000. The interest rate will be 1%below prime. This will be a variable interest rate adjusted quarterly. Generally,the maximum term of financing will be 5 years. However, individual banks may consider longer amortizations(without BDF subsidy after 5 years) as they deem appropriate. Final loan terms and conditions will be set by the local originating bank on an individual project basis. Application Review All loans will be originated by the participating local bank. Therefore the applicant and project must meet the normal commercial lending criteria of the bank. If the participating bank finds that the project meets their lending criteria,the proposed project will be reviewed for compliance with the above criteria by the Business Development Fund Oversight Committee. The Committee will be composed of one representative from each of the four following groups: utility companies,lenders,government,and the Resource Committee of the Sherburne County Economic Development Alliance. The Committee may waive requirements in certain cases if need be. The DDE Oversight Committee will only review the project for compliance with the program guidelines. if the Committee finds that the project meets program guidelines they will notify the local bank who will then determine final loan status. •