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<br />. <br /> <br />. <br /> <br />. <br /> <br />Micro Loan Fund Policy Guidelines <br /> <br />Page 3 <br /> <br />exceed 90% of project value. <br /> <br />Rate: <br /> <br />Fixed; 4 points below the lowest prime rate published in <br />the Wall Street Journal the day the loan is closed. <br /> <br />Term: <br /> <br />Financing up to 5 years. Loans may be amortized up to 15 <br />years with a balloon payment. <br /> <br />Refinancing: The loan may be refinanced up to 2 additional years at a <br />market rate of interest. <br /> <br />Criteria: <br /> <br />1. Borrower must be an industrial firm and create one new <br />full time job for each $20,000 loaned within 2 years. Said <br />jobs must pay a minimum average wage of $10 per hour <br />plus benefits. <br />2. Borrower must locate in the West Business Park and <br />comply with the provisions of the city's industrial and <br />business park zoning ordinances. <br /> <br />III. <br /> <br />USES <br /> <br />1. Permitted Fund Uses: <br />a. Building construction <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 <br />buildings <br />g. Public infrastructure needed for economic development <br />expanSIOns <br /> <br />2. Ineligible Fund Uses: <br />a. Expenditures for the construction and/or renovation of <br />residential units <br />b. Working capital <br />c. Refinancing of existing debt <br />d. Inventory <br /> <br />IV. BUSINESSES ELIGmILITY <br />Any project meeting the above criteria, and located or proposed to be <br />located within the city limits of Elk River, may be eligible for an <br />Economic Development Micro Loan. <br /> <br />3 <br />