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ELK RIVER ECONOMIC DEVELOPMENT <br /> BUSINESS MICROLOAN FUND GUIDELINES, POLICY & <br /> APPLICATION <br /> POLICY 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 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 /> buildings. <br /> 2. ELIGIBLE BUSINESSES <br /> Any project located or proposed to be located within the city limits of Elk River as <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 /> • Religious,political, and pornographic enterprises are not eligible. <br /> 3. MICROLOAN FUND TERMS & CONDITIONS <br /> Loan Structure <br /> All Economic Development Microloans 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 /> The EDA may require additional agreements to be signed by the borrower <br /> (i.e. security agreement,personal guarantees,business subsidy agreement). <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 /> Loan Repayment <br /> Jobs Incentive funds,including principal and interest received may not be used to <br /> support restaurant,retail, casinos, or sports facilities. <br /> IPOVERED � r <br /> Page 3 of 22 EDA&City Council Approved April 17,2017 � <br />