3.6 EDSR 08-21-2017 - Laserfiche WebLink

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July 2014 Eligible Projects Assistance must be evaluated on the existence of the following conditions as noted in Minn. Stat. 116J.8731: 1. Creation or retention of jobs, or the improvement of jobs as measured by wages, skills or knowledge; 2. Increase in the tax base; 3. Attraction of private funds to the project; 4. Incapacity of local communities and finance partners to finance project; 5. Results in higher wage levels or workforce skills; 6. Supports development of microenterprises, as defined by federal guidelines, through technical assistance or financial assistance. 7. Need for assistance to retain existing business; 8. Importance of assistance to attract out -of -state business; and 9. The project promotes or advances the green economy. The assistance cannot meet solely 7. or 8.; other conditions must also be present. Eligible Activities RLF's may be used to fund a variety of business activities including: 1. Acquisition of land 2. Construction or rehabilitation of facilities 3. Site improvements 4. Utilities or infrastructure 5. Machinery and Equipment 6. Training 7. Working capital Advance approval from DEED is necessary if the local government would like to provide financing for activities not listed above. Approval is more likely to occur in projects that relate to business development and involve other local government funds. Ineligible Activities In contrast to federal MIF funds, there are industry limitations on how state MIF RLFs may be used. State MIF RI-Fs may not be used for the operation, construction or expansion of a casino, a sport facility that that has a professional sports team as a principal tenant or any firm engaged in retailing merchandise. All assistance should follow the approved RLF guidelines. Please call your loan officer to discuss any prospective financing. Wage Goals Businesses receiving RLF -State MIF assistance must pay each employee total compensation, including benefits not mandated by law, that on an annualized basis is equal to at least 110 % of the federal poverty level for a family of four, which as of February 1, 2014 is $12.61 per hour. Each year's compensation level changes and can be found on DEED's Business Finance MIF website. Other Eligible Uses of the Funds Minn. Stat. 116J.8731 allows local governments to loan or grant RLF funds to a regional development commission, other regional entities, or a certain statewide community capital funds to provide the local match required for capitalization of a regional or statewide RLF. Unlike federal MIF funds, state MIF funds '*'Vjr� held by local governments never lose their state identify and must follow all applicable laws and regulations. 2