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<br />. <br /> <br />. <br /> <br />. <br /> <br />REVISED <br />ELK RIVER ECONOMIC DEVELOPMENT <br />MICRO LOAN FUND POLICIES & GUIDELINES <br /> <br />City of Elk River Economic Development Authority <br />13065 Orono Parkway, P.O. Box 490 <br />Elk River, MN 55330 <br />(612) 441-7420 <br /> <br />I. <br /> <br />PURPOSE <br />The Economic Development Authority for the City of Elk River (EDA) <br />recognizes the need to stimulate private sector investment into <br />manufacturing facilities and equipment in order to create new jobs, <br />boost productivity and retain existing jobs for local residents. <br />Additionally, the need exists to encourage investment in the expansion <br />and/or rehabilitation of commercial and retail buildings in order to <br />maintain the economic viability of Elk River's central business <br />districts. Subsequently, the purpose of this program is to provide low <br />interest, long term (Le. greater than one year.) loans as incentives for <br />industrial development within the City of Elk River and to encourage <br />commercial and retail business owners in the central business district <br />to rehabilitate their existing buildings. <br /> <br />II. LOAN PROGRAMS <br />In order to meet the economic and community development objectives <br />of the EDA, three distinct loan programs exist within the Micro Loan <br />Fund to promote business growth in Elk River. <br /> <br />Supplemental Financinl!' Prol!'ram <br />Purpose: The Supplemental Financing Program is designed <br />industrial firms who have maximized their conventional <br />financing and equity resources and subsequently would be <br />unable to complete a project without EDA assistance. <br /> <br />Amount: <br /> <br />Up to $50,000 <br /> <br />Equity: <br /> <br />Must match EDA loan with 1:1 ratio. Total loans not to <br />exceed 90% of project value. <br /> <br />Rate: <br /> <br />Fixed; 1 point below the lowest prime rate published in <br />the Wall Street J oumal the day the loan is closed. <br /> <br />Term: <br /> <br />Financing up to 3 years. Loans may be amortized up to 15 <br />years with a balloon payment. <br />