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• 6. Small Business Development Loan <br /> This loan is administered through the Minnesota Agricultural and <br /> Economic Development Board. It makes small business loans through <br /> the issuance of industrial revenue bonds backed by a State-funded <br /> reserve of 25%. This reserve helps lower the interest rate on the <br /> mortgage. Funds can be used for real-estate financing as well as <br /> equipment purchases. <br /> 7. Environmental Clean-Up Funds <br /> Twenty-five percent (25%) of the surcharge the City collects from the <br /> Elk River Landfill is designated for landfill abatement. These funds <br /> could be used to accomplish environmental clean-up on the Custom <br /> Motor site, avoiding disposal at a landfill. <br /> 8. Summary <br /> Most of the programs listed above can be used in conjunction with one <br /> another. That is, an EDA micro-loan can be used to supplement, say, <br /> conventional financing (or SBA financing) and business/owner equity. <br /> If TIF is utilized, a new or expanding business may be reimbursed for <br /> such things as land acquisition costs, site preparation costs, on-site <br /> utility extensions, and off-site utility extensions, etc. Using more than <br /> one financing program provides an additional benefit to the company <br /> as it ensures that a competitive package is being offered. This, in turn, <br /> helps the company preserve its funds for other needs such as working <br /> capital, etc. <br /> • <br /> ACH-br <br />