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,-(./ A.( <br /> ity of MEMORANDUM <br /> lk� • <br /> River <br /> TO: STEVE ACH, CITY PLANNER <br /> ELK RIVER PLANNING COMMISSION <br /> FROM: WILLIAM RUBIN, ECONOMIC <br /> DEVELOPMENT COORDINAT I , <br /> DATE: APRIL 1, 1994 <br /> SUBJECT: POTENTIAL FINANCING PROGRAMS: <br /> CUSTOM MOTORS 13913 HWY 10 <br /> INTRODUCTION <br /> At the March Planning Commission meeting, you requested information <br /> regarding potential financing programs to assist Custom Motors with a <br /> potential relocation from its existing site at 13913 Highway 10. The <br /> • information found below is submitted in response to this request. <br /> TYPICAL ELK RIVER FINANCING PROGRAMS <br /> 1. Micro-Loan Fund <br /> The Elk River EDA, in conjunction with the City of Elk River, <br /> established its own micro-loan program to supplement primary <br /> financing and business/owner equity associated with expansion and/or <br /> relocation programs in the community. Loans may be used for fixed <br /> assets (land, building, machinery, equipment) plus working capital and <br /> industrial inventory. Retail inventory and the refinancing of existing <br /> debt are ineligible uses. <br /> The micro-loan program offers great flexibility. Loans may range from <br /> $5,000 to $50,000, and, repayment is tied to the life of the asset that is <br /> financed (land and building: 15-20 years; machinery and equipment: 7 <br /> years). The interest rate on the loan is tied to prime, but is subject to <br /> periodic adjustments should the prime rate fluctuate. <br /> As loans are repaid, the principal and interest is returned to the micro- <br /> loan pool so that additional business loans can be made. <br /> • <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 <br />