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of <br />ver <br />MEMORANDUM <br />TO: EDA Finance Committee <br />Tim Simon, Finance Director <br />FROM: Catherine Mehelich, Director of Economic Development <br />DATE: April 14, 2008 <br />SUBJECT: Consider Micro Loan Application -Pomeroy Tool, Inc. <br />A meeting of the EDA Finance Committee will be held at City Hall on Monday, Apri114, <br />2008 at 7:00 am to review a Micro Loan application. <br />Attached is the Micro Loan application submitted by Mr. Long Do who is proposing to <br />purchase Pomeroy Tool, Inc. <br />Pomeroy Tool, Inc. is an established Elk River company that specializes in the <br />manufacturing of precision machined parts and components for the aerospace, laser <br />manufacturing, and electrical motor manufacturing industries. An outline of the company's <br />history in Elk River since establishment in 1986 is included in the application. Founder Dick <br />Pomeroy has an identified a buyer, Mr. Long Do, who proposes to continue the business <br />operations in Elk River. Mr. Long Dow will be present to discuss the project with the <br />committee. <br />Pomeroy Tool, Inc. is requesting an EDA Industrial Incentive Micro Loan of $100,000 <br />toward the purchase of existing equipment, of which the the EDA would obtain a 2nd <br />position lien. An appraisal of the equipment is included in the application for review. A <br />lease agreement has been established to continue operations in its current Elk River location. <br />In addition to the financial criteria that must be considered, the Finance Committee must <br />also consider to what degree the applicant satisfies the criteria set forth in the Micro Loan <br />Fund policies outlined below: <br />Micro Loan Criteria <br />• Max. Loan Amount: $100,000 <br />• Interest rate: fixed, 2 below prime <br />