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III. <br /> <br />Equ/tT: <br /> <br />Must have private-sector commitments for 50°,/o of the project cost. <br />Borrower to provide 10% or more of project financing. <br /> <br />P,.ate: <br /> <br />Fixed; 4 points below the lowest prime rate published in <br />the Wall Street Journal the day the loan is closed, or 2%, whichever is <br /> <br />greater. <br /> <br />TerlTl: <br /> <br />Financing with a balloon payment in up to 5-years. Loans may be <br />amortized up to the following limits: <br /> 15-years on real estate uses; <br /> 1 O-years on equipment uses. <br /> <br />Extension: <br /> <br />In the event that the Borrower is unable to obtain conventional <br />financing to replace the Micro Loan ar the end of five years, the loan <br />may be extended up to m~o additional years at a market rate of <br />interest. <br /> <br />Criteria: <br /> <br />1. Borrower must be an industrial fi_ma and create one new <br />full-time job for each $20,000 loaned witkin 2 years. Said jobs must <br />pay a minimum wage of $10.00 per hour plus benefits. Loans in excess <br />of $75,000 shall meet the City's Business Subsidy Policy for new job <br />and wage goals, as well as location requirements. <br /> <br />2. Borrower must locate in the West Business Park (see attached <br />map) and comply with the provisions of the city's industrial and <br />business park zoning ordinances. <br /> <br />USES <br /> <br />1. Permitted Fund Uses: <br /> a. Building construction <br /> b. Land acquisition <br /> c. Machinery <br /> d. Furniture, fixtures, and equipment (FF&E) <br /> e. Renovation and modernization of buildh~ <br /> f. Exterior renovation of retail, commercial and industrial buildings <br /> g. Public infrastructure needed for economic development expansions <br /> h. Investment real estate with a minhrmm of 50% of the space pre-leased <br /> <br />2. Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of residential units <br /> b. Working capital <br /> c. Refinancing of e.xistmg debt <br /> d. Inventory <br /> <br />IV. BUSINESSES ELIGIBILITY <br /> Any project meeting the above criteria, and located or proposed to be located within <br /> the city limits of Elk River as defined by this pro,am, may be eli~ble for an <br /> Economic Development Micro Loan as further deemed herein: <br />Elk R/vet Econormc Development Auflaomy <br />Micro Loan Fund Poliq, & Guidelines Page 4 of 8 <br /> <br /> <br />