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<br />Consider EDA Micro Loan Application -Ethanol Technology of Minnesota <br />August 6, 2008 EDA Finance Committee Meeting <br />Page 2 of 2 <br />Micro Loan Criteria <br />• Max. Loan Amount: $100,000 <br />• interest rate: fixed, 2 below prime <br />• Equity: 10% of project <br />• Private Financing: 50% of project <br />• 1 job created per $20,000 loaned <br />• Minimum wage of $15 per hour <br />Ethanol Technology of Minnesota, LLC <br />• Amount requested: $74,000 <br />• Rate requested: fixed, 2 below prime <br />• Equity proposed: 60% of project <br />• Private Financing: 20% of project <br />• 7 jobs proposed to be created within 2-years at $15+/hr wage <br />Action Requested <br />The EDA Finance Committee is asked to provide a recommendation to the EDA for approval <br />of the micro loan with the following terms and conditions: <br />Participation Loan: First National Bank of Elk River <br />Loan Amount: $74,000 <br />Interest Rate: fixed, 2 points below prime <br />Term: 10-year amortization; 5-year balloon <br />Security: 2"d position lien equipment, inventory, A/R (real estate) <br />Business Subsidy: Execution of a Business Subsidy Agreement for the creation of <br />7 full-time employment positions at wages not less than $15.00 per hour <br />within 2-years of the loan closing. <br />The EDA will consider the Finance Committee's recommendation at its August 11, 2008 <br />meeting. <br />S:~EDAV~Iicro Loan Fund~Finance Committee~2008~Ethanol Technology of MN~8.06.08 Finance Comm.doc <br />