6. EDSR 08-11-2008 - Laserfiche WebLink

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,_ Consider EDA Micro Loan Application -Pomeroy Tool, Inc. April 14, 2008 EDA Finance Committee Meeting Page 2 of 2 • Equity: 10% of project • Private Financing: 50% of project • 1 job created per $20,000 loaned • Minimum wage of $15 per hour Pomeroy Tool, Inc. • Amount requested: $100,000 • Rate requested: fixed, 2 below prime • Equity proposed: 10% of project • Private Financing: 75% of project • 1 job retained/created per $16,600 loaned • Minimum wage of $15 per hour In accordance with the MN Business Subsidy Law, any loan amount over $75,000 requires a Business Subsidy Agreement for job and wage goals to be created as a result of the assistance, and a requirement to continue operations in Elk River for 5-years. In addition, the Subsidy Law requires approval by the local elected body. Following review and approval by the EDA at its April 14`" meeting, staff anticipates the City Council's consideration for final approval at its Apri121, 2008 meeting. Requested Action The EDA Finance Committee is asked to provide a recommendation to the EDA and City Council for approval of the micro loan with the following terms and conditions: Participation Loan: Loan Amount: Interest Rate: Term: Security: Business Subsidy: Attachments The Bank of Elk River $100,000 fixed, 2 points below prime 10-year amortization; 5-year balloon 2nd position lien on related equipment purchase Execution of a Business Subsidy Agreement for the retention of 4 full-time employment positions, and the creation of 2 full-time positions at wages not less than $15.00 per hour within 2-years of the loan closing. • Micro Loan Fund Policy & Guidelines • Pomeroy Tool, Inc. Micro Loan Fund Application and related attachments S:\EDA\Micro Loan Fund\Finance Committee\2008\Pomeroy Tool\4.14.08 Finance Comm.doc