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MEMORANDUM <br />TO: EDA Finance Committee <br />Tim Simon, Finance Director <br />FROM: Catherine Mehelich, Director of Economic Development <br />DATE: August 6, 2008 <br />SUBJECT: Consider Micro Loan Application <br />-Ethanol Technology of Minnesota, LLC (ETom) <br />Attachment <br />~ EToM Micro Loan Application and related attachments dated July 18, 2008. <br />Attached is the Micro Loan application submitted by Mr. Bart Wells, CEO of Ethanol <br />Technology of Minnesota, LLC (EToM). ETom is a recently established Elk River company <br />that specializes in the manufacturing of ethanol conversion kits. Mr. Wells also owns and <br />operates Hi Tech Motorsport, Inc. located in the former Furniture & Things (or business <br />incubator) building on East Highway 10 in Elk River. <br />The application includes background information about the owner and EToM business. In <br />short, Mr. Wells has developed a technology fora "plug and play" system that allows ethanol <br />vehicles to be converted. Mr. Wells will be in attendance at the Committee meeting to <br />further describe the project and financing request. <br />EToM is requesting an EDA Industrial Incentive Micro Loan of $74,000 to assist in <br />financing equipment, remodeling and inventory necessary for the business expansion <br />project. The EDA would obtain a 2nd position lien behind the primary lender, First National <br />Bank of Elk River, on the equipment, inventory and accounts receivable (in addition to real <br />estate, if necessary). <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 />