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Term: Financing with a balloon payment in up to 5-years.Loans may be <br /> amortized up to the following limits: <br /> 20 years on real estate uses; <br /> 5-10 years on equipment uses. <br /> Extension: The loan term of 5 years may be extended by up to two additional <br /> years with approval from the EDA and City Council. <br /> Criteria: Borrower must create or relocate one new full-time job to the City of <br /> Elk River for each$20,000 loaned,retain one new full-time job for <br /> each$10,000 loaned,or combination of retainage and creation to meet <br /> the requirements.All new jobs must be created within 2 years and <br /> retained for the period of the loan. Said jobs must pay greater of <br /> $15.00 per hour or 150%of state or federal minimum wage,whichever <br /> is greater,exclusive of benefits required by law.Any loans shall meet <br /> the city of Elk River Business Subsidy Policy for the creation of new <br /> jobs,as well as a 5-year location requirement. <br /> In the case where multiple sources of public financing are requested <br /> (e.g.Microloan and Tax Increment Financing) job creation goals shall <br /> not be double-counted. <br /> Eligible Costs: Funds may be used by the borrower for costs related to job creation <br /> and retention as a result of the project as defined in the City's Business <br /> Microloan Fund Policy.Eligible costs may include relocation costs that <br /> equal the lesser of$25,000 or 20%of total loan amount. Costs may <br /> also include actual incurred City fees associated with construction <br /> and/or development costs of the project and outstanding or pending <br /> assessments on properties where a business is to be located. In no <br /> circumstance may Jobs Incentive funds be used for restaurants,retail <br /> businesses,casinos,or sports facilities. <br /> Permitted Fund Uses: Formatted:Font:Not Bold <br /> a. Building construction Formatted:Indent:First line: 0" <br /> b. Land acquisition <br /> c. Machinery <br /> d. Furniture,fixtures,and equipment(FF&E) <br /> e. Renovation and modernization of buildings <br /> f. Exterior renovation of retail,commercial and industrial buildings <br /> g. Public infrastructure needed for economic development expansions <br /> h. Investment real estate with a minimum of 50%of the space pre-leased <br /> Ineligible Fund Uses: Formatted:Font:Not Bold <br /> a. Expenditures for the construction and/or renovation of residential units <br /> b. Working capital <br /> c. Refinancing of existing debt <br /> Inventory <br /> P 0 1 1 0 f a B Y <br /> Page 12 of 29 NATURE <br />