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Redevelopment Financing Program <br />Purpose: The Redevelopment Financing Program is available to business and <br /> proper~y owners m the central business disrmict (CBD) for t_he <br /> rehabilitation ,~nd restoration o£ their buildings. <br /> <br />Amount: Up to $50,000 <br /> <br />Equity: <br /> <br />Must match EIDA loan with 1:1 ratio. Total loans not to <br />exceed 90% of project value. <br /> <br />R. ate: <br /> <br />WelT%l' <br /> <br />FLxed; 2 points below the lowest pm'ne rate published in <br />the Wall Street Journal the day the loan is closed. <br /> <br />Financing up to 3-years. Loans may be amortized up to <br />15-years with a balloon payment. <br /> <br />Refinancing: The loan may be refinanced up to 2 additional years at a <br /> market rate of interest. <br /> <br />Criteria: <br /> <br />1. At a minimum, 20% of Micro Loan dollars must be used <br />for the improvement of the buildmg's facade. <br />2. Borrower must be located in the Central Business <br />District (see attached marl). <br /> <br />Industrial Incentive Program <br />Purpose: The purpose of the Industrial Incentive Program is to encourage <br /> industrial development that supports the tax base and brings quality <br /> jobs to the city. <br /> <br />Amount: Up to $100,000 <br /> <br />Equity: <br /> <br />Must match EDA loan with a 3:1 ratio. Total loans not to <br />exceed 90% of project value. <br /> <br />FL:ed; 4 points below the lo,vest prime rate Published in <br />the Wall Street Journal the day the loan is closed. <br /> <br />Financing up to 5 years. Loans may be amort2ed up to <br />15-years with a balloon payment. <br /> <br />Refinancing: The loan may be refinanced up to 2 additiona} years at a <br /> market rate of interest. <br /> <br />Criteria: <br /> <br />1. Borrower must be an industrial firm and create one nexv <br />full_t2me job for each $20,000 loaned within 2 years. Said jobs must <br />pay a mimmum average wage of $10 per hour plus benefits. <br /> <br />Elk River Econormc Development Authority <br />Micro Loan Fund Policy & GuideLines <br /> <br />Page 3 of 8 <br /> <br /> <br />