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ELK RIVER ECONOMIC DEVELOPMENT <br /> BUSINESS MICROLOAN FUND PQ' ICY <br /> G-1-11 DEI—I GUIDELINES, POLICY &APPLICATION <br /> I. PURPOSE <br /> The Economic Development Authority for the city of Elk River(EDA)recognizes <br /> the need to stimulate private sector investment into manufacturing and certain <br /> commercial facilities and equipment in order to create new jobs,boost productivity <br /> and retain existing jobs for local residents.Additionally,the need exists to encourage <br /> investment in the expansion and/or rehabilitation of commercial and retail buildings <br /> in order to maintain the economic viability of the City and in the Downtown <br /> District. Subsequently,the purpose of this program is to provide low interest,long- <br /> term(i.e.greater than one year)loans as incentives for new industrial and <br /> commercial development within the city of Elk River and to encourage commercial <br /> and retail business owners in the Downtown District to rehabilitate their existing <br /> buildings. <br /> 2. LOAN PROGRAMS <br /> In order to meet the economic and community development objectives of the EDA, <br /> four distinct loan programs exist within the Business Microloan Fund_ <br /> 3. ELIGIBLE BUSINESSES <br /> Anyproject meeting the above criteria,and located or proposed to be located within <br /> the city limits of Elk River as defined by this program,may be eligible for an <br /> Microloan as further defined herein: <br /> • Unless otherwise stated,business must be a for-profit corporation, <br /> partnership,or sole proprietorship. <br /> • Business must be a small business as defined by the Small Business <br /> Administration (SBA). <br /> • Business must have a positive net worth. <br /> • Religious,political,and pornographic enterprises are not eligible to use <br /> the Economic Development Microloan Fund. <br /> 4. MICROLOAN FUND TERMS &CONDITIONS <br /> Loan Structure <br /> All Economic Development iNficroloans shall be structured as direct loans unless <br /> otherwise approved by the EDA Finance Committee.If a participation loan is <br /> requested,an agreement will be signed by the borrower,primary lender and the <br /> EDA. <br /> PawEREa Rr <br /> Page 2 of 29 NATURE <br />