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MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />Economic Development Authority <br /> <br />Catherine Mehelich, Director of Economic Development//~ <br />April 14, 2003 <br /> <br />SUBJECT: Consider Amendments to the Micro Loan Policy <br /> <br />Attachments · Micro Loan Fund Policy, Revised Sept. 1999 <br /> · City of Elk River Business Subsidy Policy <br /> · Draft - Micro Loan Fund Policy, Revised April 2003 <br /> · Finance Committee Meeting Notes and Minutes <br /> · Note from Kermit Bode, Custom Cutter Grinding - Feb. 2003 <br /> <br />Issue <br />Over the past several months staff has been working with the EDA Finance Committee to <br />revisit the Micro Loan Policy for any amendment issues. Minutes from the Finance <br />Committee meeting discussions are attached. A final draft of the revised Micro Loan Policy, <br />as well as the original version, is attached for the EDA's consideration. Following the <br />EDA's review and discussion, if there aren't any revisions, staff recommends the EDA <br />consider adoption of the amended Micro Loan Policy. <br /> <br />Primary Amendment Issues <br />The following items are the primary amendment issues reflected in the attached revised <br />policy: <br /> <br />Clarification of lending amount, equity requirements, terms and extensions for each <br />financing program (II. Loan Programs). <br /> <br />Established an interest rate floor of 2% for each financing program (II. Loan <br />Programs). <br /> <br />[] Revised wage goal for the Supplemental Financing Program from a minimum wage <br /> of $8/hour to $9/hour (II. Loan Programs). <br /> <br /> <br />