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• The details of the loan would be as follows: <br /> • $50,000 principal <br /> • Five year term <br /> • Fixed interest rate of 8.25 percent <br /> • Collateralized with a second mortgage position on the land and <br /> buildings. <br /> Staff is recommending a fixed interest rate on this loan due, in part, to <br /> discussions with the Finance Department and staffs overall concern with the <br /> logistics of implementing floating interest rate loans. The floating interest <br /> rate makes administration of these loans more difficult due to having to <br /> recalculate loan payments and provide this updated information to our <br /> borrowers on a semi-annual basis. Staff will likely be recommending a fixed <br /> interest rate approach to future micro loans also. <br /> Action Requested <br /> Staff is recommending that,the EDA approve the $50,000 loan request from <br /> Eastey and Johnson, Inc. <br /> IllAttachments <br /> • Meeting minutes EDA Finance Committee <br /> • Statement of Financial Activity as of January 31, 1997 <br /> • Loan Application from Eastey and Johnson, Inc. <br /> \\elkriver\sys\shrdoc\eda\meetings\edeastey.doc <br />