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<br />Criteria: <br /> <br />1. Borrower must be an industrial or high technology firm and create <br />one new full-time job for each $20,000 loaned within 2 years. Said jobs <br />must pay a minimum wage of $10.00 per hour excluding benefits <br />required by law. Loans in excess of $75,000 shall meet the attached <br />City of Elk River Business Subsidy Policy for the creation of new jobs <br />at a minimum wage of $15.00 per hour excluding benefits required by <br />law, as well as a 5-year location requirement. <br /> <br />In the case where the multiple sources of public financing are requested <br />(e.g. Micro Loan and Tax Increment Financing) job creation goals shall <br />not be double-counted. <br /> <br />2. Borrower must comply with the provisions of the city's Industrial <br />and Business Park zoning ordinances as applicable. <br /> <br />Downtown Rehabilitation Financing Program <br />Purpose: The Downtown Rehabilitation Financing Program is available to <br />business and property owners in the Downtown District (DD) for the <br />rehabilitation and restoration of their buildings. <br /> <br />Amount: <br /> <br />Equity: <br /> <br />Rate: <br /> <br />Term: <br /> <br />Extension: <br /> <br />Criteria: <br /> <br />Up to $75,000 of secondary financing (not to exceed 40% of the <br />project cost. <br /> <br />Must have private-sector commitments for 50% of the project cost. <br />Borrower must provide 10% or more of project financing. <br /> <br />Fixed at 2%. <br /> <br />Financing with a balloon payment in up to 5-years. Loans may be <br />amortized up to the following limits: <br />20-years on real estate uses; <br />10-years on equipment uses. <br /> <br />In the event that the Borrower is unable to obtain conventional <br />financing to replace the Micro Loan at the end of five years, the loan <br />may be extended up to two additional years at a market rate of <br />interest. <br /> <br />1. At a minimum, 20% of Micro Loan dollars must be used for the <br />improvement of the building fa<;:ades. <br /> <br />2. Rehabilitation loans in the Downtown District are exempt from <br />job creation and wage goals since the loan amount does not exceed <br />$75,000 and does not qualify as a business subsidy by state law. <br /> <br />3. Borrower must be located in the Downtown District (DD) <br />(see attached map). <br /> <br />Micro Loan Fund Policy & Guidelines <br />Amended May 2006 <br /> <br />Page 3 of 14 <br />