3.0 HPSR 11-04-2004 - Laserfiche WebLink

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Extension: In the event at the Borrower is unable to obta~ onventional financing to r ace the Micro Loan at the en of five years, the loan may be extende p to two additional yea at a market rate of interest. Criteria: 1. Borrower must be a ~ dustr~ trm and create one new full-time job for each $2 , 0 oaned within 2 years. Said jobs must pay a minimum wage of 0 per hour plus benefits. Loans in excess of $75,000 shall meet City usiness Subsidy Policy for new job and wage goals, as as locatio requirements. 2. Borrower st comply with the provisions of the city's industrial and busin park zoning ordinances. '~ Redevelopment Financing Program Purpose: The Redevelopment Financing Program is available to business and property owners in the central business district (CBD) for the rehabilitation and restoration of their buildings. Amount: Up to $50,000 of secondary financing (not to exceed 40% of the project cost. Equity: Must have private-sector commitments for 50% of the project cost. Borrower to provide 10% or more of project financing. Rate: Fixed; 2 points below the lowest prime rate published in the Wall Street Journal the day the loan is closed, or 2%, whichever is greater. Term: Financing with a balloon payment in up to 3-years. Loans may be amortized up to the following limits: 15-years on real estate uses; 10-years on equipment uses. Extension: In the event that the Borrower is unable to obtain conventional financing to replace the Micro Loan at the end of three years, the loan may be extended up to two additional years at a market rate of interest. Criteria: 1. At a minimum, 20% of Micro Loan dollars must be used for the improvement of the building's facade. 2. Borrower must be located in the Central Business District (see attached map). Elk River Economic Development Authority Micro Loan Fund Policy & Guidelines Revised June 2004 Page 3 of 8