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t <br />7 <br />Consider EDA Micro Loan Application -Pomeroy Tool, Inc. <br />August 6, 2008 EDA Finance Committee Meeting <br />Page 2 of 2 <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 attached Micro <br />Loan Fund Policy. <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: Alliance Bank <br />Loan Amount: $100,000 <br />Interest Rate: fixed, 2 points below prime <br />Term: 10-year amortization; 5-year balloon <br />Security: Options to be discussed by Finance Committee <br />Business Subsidy: Execution of a Business Subsidy Agreement fox the retention of <br />4 full-time employment positions and the creation of 2 full-time positions <br />at wages not less than $15.00 per hour within 2-years of the loan closing; <br />in addition to a requirement to continue operations in Elk River for 5- <br />years. <br />The EDA will consider the Finance Committee's recommendation at its August 11, 2008 <br />meeting. <br />• <br />S:\EDA\Micro Loan Fund\Finance Committee\2008\Pomeroy Tool\8.06.08 Finance Comm.doc <br />