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<br /> 1 <br />SHORT-TERM BUSINESS INTERRUPTION LOAN PROGRAM <br /> GUIDELINES AND POLICIES <br /> City of Kasson Economic Development Authority <br /> <br />STBIL – I. INTRODUCTION – PURPOSE AND SOURCE OF FUNDS <br /> <br />The purpose of this policy is to provide written guidelines for the processing and awarding of <br />Short-Term Business Interruption Loans through the City of Kasson Economic Development <br />Authority (EDA) Revolving Loan Fund (RLF) Program in response to the adverse effect of <br />COVID-19 on local businesses. This document is intended to be used as the procedure for the <br />EDA to follow in granting and administration of Short-Term Business Interruption Loans. <br />The scope of the RLF program is being expanded to include the STBIL Program. <br /> <br />The purpose of the Short -Term Business Interruption Loan Program is to assist existing <br />businesses with their immediate cash flow needs in response to the adverse effects COVID- <br />19 has had on their business in Kasson. The program is intended to be layered with other <br />relief programs such as the Minnesota Department of Employment and Economic <br />Development (DEED) and Small Business Administration (SBA) Economic Injury Disaster <br />Loan Program. The Short-Term Business Interruption Loan Program will draw on funds in <br />the City of Kasson’s RLF Program. <br /> <br />STBIL – II. ELIGIBILITY <br /> <br />• Businesses whose primary place of business is located in Kasson (or within 2,000 feet of <br />City boundaries. <br />• Businesses must have been in operation prior to March 1, 2020. <br />• Businesses must have applied for MN DEED Emergency Loan Program for small <br />businesses or SBA Economic Injury Disaster Loan Program and have a stated need for <br />immediate funds to maintain their business in good stature. <br /> <br />STBIL – III. LOAN TERMS, AMOUNT, AND LIMITATIONS <br /> <br />• Maximum loan amount of $5,000 per business: <br />o Loan amount is based on fixed costs for the business in February. <br />o Loan amount is flexible to support the needs of the business. <br />• Interest rate of 0%. <br />• Funds to be released within 30 days after loan application approval. <br />• Loan payment deferred to 6 months from the date of first disbursement. <br />• Loans repaid at $100 per month until loan is fully paid. <br />• Loans will secured by a blanket chattel via a Uniform Commercial Code (UCC) filing. <br /> <br />STBIL – IV. ELIGIBLE USES FOR LOAN FUNDS <br /> <br />Loan funds may be used to cover expenses and fixed costs related to: <br />• Rent, leases, or mortgage payments.