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<br />N:\Departments\Community Development\Economic Development\EDA\Administrative\Agenda\Joint Finance Committee Agenda <br />Packets\2020\06152020\4.1 sr COVID19 Small Business Emergency Microloan Program Applications.docx <br />Extension: In the event the borrower is unable to obtain conventional financing to replace the microloan at <br />the end of five years, the loan may be extended up to two additional years at a market rate of interest. <br /> <br />Collateral: Loans must be supported by sufficient collateral, which will include personal guarantees and/or <br />corporate guarantees. <br /> <br />Reporting: <br />As a condition for receiving funding, all recipients are required to submit a brief report to the EDA within sixty <br />(60) days of receiving funds, specifying how the funds were used and providing evidence in the form of paid <br />invoices, statements or similar documentation. <br /> <br />Permitted Fund Uses: <br />Awarded funds may be used exclusively for current payroll obligations (may not include employees who have <br />been laid off), lease or mortgage payments, utilities, accounts payable, property taxes and other critical business <br />expenses that can’t be paid as a direct result of the COVID-19 pandemic. Awarded funds may not be used for <br />business owner’s/manager’s personal uses or expenses. <br /> <br />Ineligible Fund Uses: <br />Assistance cannot be provided to businesses or nonprofits that: <br />1. Do not have a physical business address within the City of Elk River <br />2. Are home-based businesses <br />3. Derive income from passive investments without operational ties to operating businesses <br />4. Primarily generate income from gambling activities <br />5. Generate any part of its income from adult-oriented or tobacco/vaping-related activities <br />6. Have no current or historical financial statements <br />7. Previously received emergency funds from the EDA <br /> <br />Since the release of this program we have received 12 inquiries and seven applications. Two applications did <br />not qualify as an eligible business affected by the Governor’s Executive Orders 20-04; 20-08 and notice of <br />ineligibility was provided to the applicants. One application was deemed incomplete, attempts have been made <br />by staff to reach out to this applicant. <br /> <br />The following applications have been reviewed: <br /> <br />Pyramid Fitness Group, LLC dba Anytime Fitness <br />The applicant requested $20,000 loan and indicated their request for up to $5,000 in property tax relief for <br />taxes payable in 2020. The applicant has supplied a complete application and all supporting documentation. <br />The applicant is an eligible business type noted in Executive Orders 20-04; and 20-08. The lease dated <br />November 27, 2019, indicates property tax liability of $903.65 per month, or $10,843.80 payable in 2020. The <br />applicant is not in violation of any city codes, ordinances, licensing requirements or delinquent taxes, bills, or <br />charges due to the city. <br /> <br />Daddy-O’s Café, Inc. <br />The applicant requested up to $5,000 in property tax relief for taxes payable in 2020. The applicant has <br />supplied a complete application and all supporting documentation. The applicant is an eligible business type <br />noted in Executive Orders 20-04; and 20-08. The applicant is the owner and supplied a property tax statement <br />which indicates property tax liability of $9,476 payable in 2020. The applicant is not in violation of any city <br />codes, ordinances, licensing requirements or delinquent taxes, bills, or charges due to the city.