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ELK RIVER ECONOMIC DEVELOPMENT <br />BUSINESS MICROLOAN FUND GUIDELINES, POLICY & <br />APPLICATION <br />1. POLICY PURPOSE <br /> <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 prod <br />and retain existing jobs for local residents. Additionally, the <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 theDowntown District. <br />Subsequently, the purpose of this microloan 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 /> <br />buildings. <br /> <br />2. ELIGIBLE BUSINESSES <br />Any project located or proposed to be located within the city lim <br />defined by this microloan program, may be eligible for a Microloan as further <br />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 /> <br />Religious, political, and pornographic enterprises are noteligible. <br /> <br />3. MICROLOAN FUND TERMS & CONDITIONS <br />Loan Structure <br />AllEconomic DevelopmentMicroloans shallbe structured as direct loansunless <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 /> <br />The EDA may require additional agreements to be signed by the borrower <br />(i.e. security agreement, personal guarantees, business subsidy agreement). <br /> <br />Simultaneous Microloans <br />The simultaneous use of different EDA microloan programs by any one borrower or <br />for any one project is prohibited. <br /> <br />Loan Repayment <br />Jobs Incentive funds, including principal and interest received <br />support restaurant, retail, casinos, or sports facilities. <br /> <br />Page 3 of 22 <br /> <br /> <br />