5. EDSR 11-10-2008 - Laserfiche WebLink

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fiver MEMORANDUM TO: EDA Finance Committee FROM: Catherine Mehelich, Director of Economic Development DATE: November 3, 2008 SUBJECT: Consider Loan Extension Request -Lake Assault Custom Boats Attachments • Letter from Jerry Atherton of Lake Assault Custom Boats, dated October 10, 2008. • Micro Loan Extension Application and Current Financial Statements • Lake Assault Custom Boats -Amortization Schedule • Micro Loan Policy & Guidelines Requested Action The Finance Committee is asked to review and provide a recommendation to the EDA regarding the Micro Loan extension request from Lake Assault Custom Boats for an additional 2-years at a market rate of interest. Issue Mr. Jerry Atherton of Lake Assault Custom Boats, LLC has submitted a request and application for the EDA's consideration of a second extension of 2-years on its micro loan at a market rate of interest. The principal balance due on the loan is $26,810.97. Mr. Atherton submitted the attached current financial statements for the Finance Committee's consideration. Mr. Atherton has been invited to attend the Finance Committee meeting to provide an update on the current status and future plans of the company. Following any questions and answers with the applicant, he will be excused during the Finance Committee's discussion and recommendation. The Finance Committee's recommendation will be considered for final action by the EDA at its November 10, 2008 regular meeting. Background In March 2003 the EDA awarded a $50,000 Micro Loan at 3.25% interest to Lake Assault Custom Boats, LLC. The loan was used to purchase machinery & equipment necessary for the company to begin operations in 7,500 square feet of space on East Hwy 10 in Elk River.