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Consider EDA Micro Loan Application -Sweet P's Ice Cream & Candies, Inc. <br />duly 8, 2009 EDA Finance Committee Meeting <br />Page 2 of 2 <br />In addition to the financial criteria that must be considered, the Finance Committee must <br />also consider to what degree the applicant satisfies the criteria set forth in the Micro Loan <br />Fund policies outlined below: <br />Micro Loan Criteria- Downtown Rehabilitation Financing Program <br />• Max. Loan Amount: $75,000 (not to exceed 40% of the project cost) <br />• Interest rate: Fixed at 2% <br />• Equity: 10% or more of project <br />• Private Financing: 50% of project <br />• 20% of Micro Loan dollars must be used for improvement of building facade <br />• Exempt from job creation and wage goals because the loan amount does not exceed $75,000 <br />and does not qualify as a business subsidy by state law <br />Sweet P's Ice Cream & Candies, Inc. <br />• Amount requested: $20,000 (25% of project cost) <br />• Rate requested: Fixed at 2% <br />• Equity proposed: 12.5% of project ($10,000) <br />• Private Financing: 62.5% of project ($50,000) <br />• Exterior leasehold improvements ($4,000) <br />• Estimates 1-12 part-time jobs created <br />Action Requested <br />Staff recommends the EDA Finance Committee recommend EDA's approval of the micro loan <br />request, contingent on the approval of the CUP, with the following terms and conditions: <br />Participation Loan: Klein Bank, SBA7a (approved) <br />Loan Amount: $20,000 <br />Interest Rate: 2% fixed <br />Term: 5-year amortisation/5-year balloon <br />Security: Subordinate position on all business assets, personal guarantee. <br />The EDA will consider the Finance Committee's recommendation at its July 13, 2009 <br />meeting. <br />S:\EDA\Micro Loan Fund\LOANS\Sweet P's Ice Cream & Candies, Inc\7.8.09 Finance Committee.doc <br />