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Criteria: 1. Borrower must create one new full-time job for each $20,000 loaned within m,o years. Said jobs must pay a minimum wage of $9.00 per hour plus benefits. Borrower will also be required to meet certain provisions of the City's Business Subsidy Policy. 2. Borrower must be an industrial finn and comply with the provisions of the city's indusmal and business park zoning 0rdmances. Redevelopment Financing Program Purpose: The Redevelopment Financing Pro,am 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 cormrfinnents for 50% of the project cost. Borrower to proxdde 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 geater. Wenll: Financing with a balloon payment in up to 3-years. Loans may be amortized up to the following lhrfits: 15-years on real estate uses; 10-years on equipment uses. Extension: In the event that the Borrower is unable to obtaha conventional ffmancing to replace the Micro Loan at the end of three years, the loan ma.5' 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 hnprovement of the buildmg's facade. 2. Borrower must be located in the Central Business District (see attached map). Industrial Incentive Program Purpose: The purpose of the Industrial Incenm, e Progam is to encourage industrml development that supports the tax base and brin~ quality jobs to the city. Amount: Up to $100,000 of secondary financing (not to exceed 40% of the project cost. Elk River Econormc Development Authority /Vficro Loan Fund Policy & Guidelines Page 3 of 8