6.0 EDSR 07-13-2009 - Laserfiche WebLink

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ver MEMORANDUM TO: EDA Finance Committee FROM: Annie Deckert, Economic Development Assistant DATE: July 8, 2009 SUBJECT: Consider Loan Extension Request -The Waterfall Salon Attachments • Letter from Michael Scheevel, owner of the Waterfall Salon • January 14, 2008 EDA Minutes- approval of Waterfall Micro Loan • Waterfall Salon's current financial statements (provided at meeting) • Waterfall Salon -Current Amortization Schedule • Waterfall Salon -Proposed Extended Amortization Schedule as requested by applicant (monthly payment reduced by 50%, one year extension) • Micro Loan Policy & Guidelines Requested Action The Finance Committee is asked to review and provide a recommendation to the EDA regarding the Micro Loan extension request from the Waterfall Salon for one additional year extension and a 50% reduction in monthly payment from the current $1,074.53 a month to $537.27 a month at the current 3% interest rate. Issue Mr. Michael Scheevel, owner of the Waterfall Salon., has submitted a request and application for the EDA's consideration of a one year extension on its micro loan at the current 3% interest rate and a 50% reduction in monthly payment from the current $1,074.53 a month to $537.27 a month. The last complete monthly payment was received on January 21, 2009. Staff received a check of $600.00 from Mr. Scheevel on June 9, 2009, which was first applied to cover the late fees, then to the principal and interest. The current principal balance due on the loan is $13,727.45. Mr. Scheevel has been invited to attend the Finance Committee meeting to provide an update on the current status and future plans of the company. Following any questions and answers with the applicant, he will be excused during the Finance Committee's discussion and recommendation. The Finance Committee's recommendation will be considered for final action by the EDA at its July 13, 2009 regular meeting.