4.0. EDSR 07-08-1996 - Laserfiche WebLink

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i MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY FINANCE COMMITTEE HELD AT ELK RIVER CITY HALL MONDAY, JULY 1, 1996 Members Present: Jim Simpson, Lloyd Brutlag, Bud Houlton, Tom McNair Members Absent: Tom Bender Staff Present: Paul Steinman, Director of Economic Development and Lori Johnson, Finance Director The purpose of the EDA Finance Committee meeting was to review a $50,000 micro loan request from LeFebvre Trucking. Paul LeFebvre, president, was present to provide an overview of this loan request. Staff requested that additional information be provided on the business's total working capital needs. The micro loan fund guidelines indicate that the total amount of a working capital loan from this fund can be no more than 25% of a business's total working capital needs. • It was determined, after further discussion, that an appraisal would be completed on the land by First National Bank as the primary lender on this project. It was also discussed that the interest rate on this loan should be at prime rate, and adjusted every six months after closing, if there is a variation in the prime rate. It was also discussed that the first priority for securing this loan should be to obtain a second mortgage position on the land and buildings, and if that is not achievable, that equipment or accounts receivable would be used to collateralize this loan. JIM SIMPSON MOVED APPROVAL OF THE LEFEBVRE $50,000 LOAN REQUEST AND THAT SECURITY FOR SUCH LOAN SHOULD BE IN THE FORM OF A SECOND MORTGAGE POSITION ON THE BUILDINGS AND LAND,AND THAT THE INTEREST RATE ON THE LOAN WOULD BE PRIME RATE,ADJUSTABLE EVERY SIX MONTHS AFTER CLOSING. LLOYD BRUTLAG SECONDED MOTION. THE VOTE WAS AS FOLLOWS: JIM SIMPSON AYE LLOYD BRUTLAG AYE BUD HOULTON ABSTAINED (Due to association with First Nat'l Bank) TOM MCNAIR ABSTAINED (Due to association with First Nat's Bank) 41111 s:\eda\meetings\Snanmin.doc