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<br />r-C; -\) <br />( )j <br />.of <br />Ell? <br /> <br />) <br /> <br />") <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />STEVE ACH, CITY PLANNER <br />ELK RIVER PLANNING COMMISSION <br /> <br />WILLIAM RUBIN, ECONOMIC <br />DEVELOPMENT COORDINAT~V2.- <br /> <br />APRIL 1, 1994 <br /> <br />SUBJECT: POTENTIAL FINANCING PROGRAMS: <br />CUSTOM MOTORS 13913 HWY 10 <br /> <br />FROM: <br /> <br />DATE: <br /> <br />INTRODUCTION <br /> <br />At the March Planning Commission meeting, you requested information <br />regarding potential financing programs to assist Custom Motors with a <br />potential relocation from its existing site at 13913 Highway 10. The <br />e information found below is submitted in response to this request. <br /> <br />TYPICAL ELK RIVER FINANCING PROGRAMS <br /> <br />1. Micro-Loan Fund <br /> <br />The Elk River EDA, in conjunction with the City of Elk River, <br />established its own micro-loan program to supplement primary <br />financing and business/owner equity associated with expansion and/or <br />relocation programs in the community. Loans may be used for fixed <br />assets (land, building, machinery, equipment) plus working capital and <br />industrial inventory. Retail inventory and the refinancing of existing <br />debt are ineligible uses. <br /> <br />The micro.loan program offers great flexibility. Loans may range from <br />$5,000 to $50,000, and, repayment is tied to the life of the asset that is <br />financed (land and building: 15-20 years; machinery and equipment: 7 <br />years). The interest rate on the loan is tied to prime, but is subject to <br />periodic adjustments should the prime rate fluctuate. <br /> <br />e <br /> <br />As loans are repaid, the principal and interest is returned to the micro- <br />loan pool so that additional business loans can be made. <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />