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<br />N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\EDA Finance Committee Agenda <br />Packets\2018\July 31, 2018\4.1 sr Ralphies Minnoco - Energy Efficiency Loan.docx <br />Micro Loan Criteria- Energy Efficiency Improvement Program <br />• Max. Loan Amount: $74,999 <br />• Interest rate: Fixed at 3% <br />• Equity: 10% or more of project <br />• Term: The maximum maturity date will be determined by the useful life of the improvement and the <br />energy payback achieved. For projects that have a shorter length of payback (2-5) years as calculated <br />according to energy savings, the loans will have an initial maturity of up to 5 years from the date of <br />closing. Longer-life improvements (6-15 years) may apply for a longer maturity of up to 10 years. <br />• The loans will be secured by personal and corporate guarantees and if applicable a lien on equipment <br />financed and subordinate mortgage on the property. <br />• Exempt from job creation and wage goals because the loan amount does not exceed $150,000 and <br />does not qualify as a business subsidy by state law. <br /> <br />Ralphie’s Minnoco <br />• Amount requested: $19,175 <br />• Rate requested: Fixed at 3% <br />• Equity proposed: 10% <br />• Term: 5-year amortization <br />• The EDA will maintain a subordinate position on the mortgage at 13374 U.S. Highway 10 by <br />amending and restating the mortgage, entity guarantee and a personal guarantee. <br /> <br />The EDA will consider the Finance Committee’s recommendation at their August 20, 2018, meeting. <br /> <br />Financial Impact <br />The Microloan Fund has a current cash balance of $738,369.15 with $537,038.15 in notes receivable. <br /> <br />Attachments <br /> Microloan Application and Supporting Information <br /> Corporate and Personal Financial Documents (distributed at the meeting) <br /> 2013 Loan Documents <br />