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<br />Extension: <br /> <br />Criteria: <br /> <br />In dle event that tlle Borro\ver is unable to obtain conventional <br />financing to replace tIle }\ficro Loan at tile end of five years, tlle loan <br />may be extended up to t\vo additional years at a market rate of <br />in terest. <br /> <br />1. Borro\ver must be an industrial firm and create one ne\v <br />full-time job for each $20,000 loaned \vithin 2 years. Said jobs must <br />pay a minimum \vage of $10.00 per 110ur plus benefits. Loans in excess <br />of $75,000 s1lall meet tlle City's Business Subsidy Policy for ne\v job <br />and \vage goals, as \veil as location requirements. <br /> <br />2. Borro\ver must comply \vith tlle provisions of tile city's industrial <br />and business park zoning ordinances. <br /> <br />Redevelopment Financing Program <br />Purpose: Tile Redevelopment Financing Program is a'vailable to business and <br />property o\vners in tlle central business district (CBD) for the <br />rel1abilitation and restoration of tlleir buildings. <br /> <br />..:\mount: <br /> <br />Equity: <br /> <br />Rate: <br /> <br />Term: <br /> <br />Extension: <br /> <br />Criteria: <br /> <br />III. USES <br /> <br />Up to $50,000 of secondary financing (not to exceed 400/0 of the <br />project cost. <br /> <br />1-1ust 11a've private-sector commitments for SOO/o of tlle project cost. <br />Borro\ver to provide 100/0 or more of project financing. <br /> <br />FL'Xed; 2 points belo\v tile lo\vest prime rate published in the <br />\YJ all Street Journal tlle day the loan is closed, or 20/0, \"vluc11e"ver is <br />greater. <br /> <br />Financing \vitIl a balloon payment in up to 3-years. Loans may be <br />amortized up to tlle follo\ving limits: <br />is-years on real estate uses; <br />10-years on equipment uses. <br /> <br />In tlle e'vent tllat tlle Borro\ver is unable to obtain conventional <br />financing to replace the }\1icro Loan at tlle end of tllree years, the <br />loan may be extended up to t\vo additional years at a market rate of <br />interest. <br /> <br />1. .L\t a minimum, 200/0 of i)/Iicro Loan dollars must be used for the <br />impro\Tement of the building's fa<;ade. <br /> <br />2. Borro\ver must be located in the Central Business District <br />(see attached map). <br /> <br />1. Permitted Fund Uses: <br />a. Building construction <br />b. Land acquisition <br /> <br />Elk River Economic Development .A.uthority <br />~1icro Loan Fund Policy & Guidelines <br />Re,rised June 2004 <br /> <br />Page 3 of 8 <br />