7.2. HRSR 04-04-2016 - Laserfiche WebLink

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City of Elk River, Minnesota Die Concepts Inc. March 23,2016 Page 3 3. Permitted Fund Uses of Microloan (Page 6 of Policy) To qualify for receipt of a microloan,the applicant must utilize the funds for the specific purposes outlined in the City's Economic Development Microloan policy. Funds may be used by the borrower for costs related to job creation and retention as a result of the project. According to the policy, loans may be used for the following activities: 1. Building construction 2. Land acquisition 3. Machinery 4. Furniture,fixtures,and equipment(FF&E) 5. Renovation and modernization of buildings 6. Exterior renovation of retail,commercial and industrial buildings 7. Public infrastructure needed for economic development expansions 8. Investment real estate with a minimum of 50%of the space pre-leased The funds would be used for renovation and modernization of an existing building,including both exterior and interior renovations of the building for industrial use. 4. Business Eligibility(Page 7 of Policy) In addition to having an eligible project a business must also meet certain criteria before it is deemed eligible to receive the loan funds.According to the Economic Development Microloan Fund Policy, to be eligible for a microloan a business must meet the following • Business must be a for-profit corporation,partnership or sole proprietorship: • Business must be a small business as defined by the small business administration: • Business must have a positive net worth: • Business must be an industrial,manufacturing,or technology-based industry: • Religious, political, casino,sports facilities and pornographic enterprises are not eligible to use the Economic Development Microloan Fund: Based on the submitted application, the business is a for-profit corporation defined as a small business, is an industrial, manufacturing or technology-based industry and is not a religious, political, casino, sports facilities, or pornographic enterprise. The two most recent full years of financial statements (2014 and 2015)indicate positive net worth. Following the completion of the acquisition, renovation and location into Elk River, the company is showing projected positive cash flow and continued net worth in 2016 and 2017. 5. Microloan Fund Terms&Conditions (Page 7 of Policy) To be determined if loan terms approved by the EDA. 6. Regulation for New Construction and Improvements (Page 7 of Policy) To be regulated if funding is approved and determined to be used for any improvements of the existing building.