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maybe extended up to two additional years at a market rate of <br />interest. <br />Criteria: 1. Borrower must be an industrial firm and create one new <br />full-time job for each $20,000 loaned within 2 years. Said jobs must <br />pay a minimum wage of $10.00 per hour excluding benefits required by <br />law. Loans in excess of $75,000 shall meet the attached City of Elk <br />River Business Subsidy Policy for new job and wage goals, as well as a <br />5-year location requirement. <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 />2. Borrower must comply with the provisions of the city's Industrial <br />and Business Park zoning ordinances as applicable. <br />Redevelopment Financing Program <br />Purpose: The Redevelopment Financing Program is available to business and <br />property owners in the Downtown District (DD) for the rehabilitation <br />and restoration of their buildings. <br />Amount: Up to $50,000 of secondary financing (not to exceed 40% of the <br />project cost. <br />Equity: Must have private-sector commitments for 50% of the project cost. <br />Borrower to provide 10% or more of project financing. <br />Rate: Fixed; 2 points below the lowest prime rate published in the <br />Wall Street Journal the day the loan is closed, or 2%, whichever is <br />greater. <br />Term: Financing with a balloon payment in up to 3-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 />Extension: In the event that the Borrower is unable to obtain conventional <br />financing to replace the Micro Loan at the end of three years, the <br />loan may be extended up to two additional years at a market rate of <br />interest. <br />Criteria: 1. At a minimum, 20% of Micro Loan dollars must be used for the <br />improvement of the building facades. <br />2. Borrower must be located in the Downtown District (DD) <br />(see attached magi). <br />Elk River Economic Development Authority Page 3 of 15 <br />Micro Loan Fund Policy & Guidelines <br />15C Draft February 2006 <br />