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City of Ell< River Micro Loan <br />Proposed Amendments to the Policy & Application <br /> <br />Issues DiscuSsed at Finance Committee Meeting (I 0-7-02) and Staff Issues for Discussion: <br />Finance Committee Recommendations from 2-18-03 meeting are highlighted in bold & itab'cs. <br /> <br />Interest Rate (Page 2 & 3): <br /> The Finance Committee proposed establishing an interest rate floor for all programs at 2%. <br /> Committee consensus on interest rate _rToor 0£2% on all prog~ams.' <br /> <br />e <br /> <br />Job & Wage Goals (Page 2 & 7): <br /> Staff recommends the Committee consider revising the loan amount-to-job ratio and wage <br /> rate for the two industrial loan programs. <br /> <br />Staff recormr~ends the Committee consider using the State economic development finance <br />loan amount-to-job ratio, as follows: <br /> $ 6,000 per job paying $9-12.00 per hour, exclusive of benefits <br /> $10,000 per job paying over $12.00 per hour, exclusive of benefits <br /> <br />Note: Loans less than $75,000 do not require compliance with the statutory Business <br />Subsidy Law for job and wage goals. However, the Finance Committee discussed that <br />perhaps the minimum criteria still be apphed for loans amounts less than $75,000. Loan <br />amounts over $75,000 must meet the City's Business Subsidy Policy. <br /> <br />Committee consensus to keep loan amount-to-fob rado the same at $20, O00/job. <br />Recommended remow2ng- "average" wage language. Amend Supplemental program <br />to require n'z/nimum wage o£$9.00 per hour. Indus=iai Incentive program minimum <br />wage to rema/n at $10. OO per hour. <br /> <br />What penalty is applied if job/wage goals are not met? Should be consistent with <br />Business Subsidy Po~cy requirements. <br /> <br />Should the 5-year location requirement be included as well? Requires call of loan anyway. <br /> <br />3. Term (Page 2 & 3): <br /> Staff recommends including language specifying the following: <br /> <br />Real estate uses: <br />Machinery & Equipment uses: <br /> <br />Maxmaum amort52ation of 20 years <br />Maximum amortization of 10 years <br /> <br />Staff recommends that the maturity date remain fixed upon refinancing. <br /> <br />Committee consensus to include sta£f recommendations stated above. <br /> <br /> <br />