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REQUEST FOR ACTION <br />To Item Number <br />Economic Development Authority 5 , <br />Agenda Section Meeting Date Prepared by <br /> November 8, 2010 Catherine Mehelich, Director of <br /> Economic Develo ment <br />Item Description Reviewed by <br />Consider EDA Micro Loan Application <br />- Promo Products, LLC Reviewed by <br />Action Requested <br />The EDA is asked to consider the EDA Finance Committee's recommendation for approval with <br />conditions. <br />• $25,000 Micro Loan to Promo Products, LLC <br />Background/Discussion <br />The attached staff report to the EDA Finance Committee and November 4, 2010 committee meeting <br />minutes provide background regarding the Micro Loan request. The applicant is anticipated to be at the <br />EDA meeting to respond to any questions about the proposed project. <br />Financial Impact <br />The Micro Loan Fund has a current cash balance of approximately $1,042,254. <br />The Finance Committee is recommending EDA approval of the following Micro Loan and term: <br />Applicant: Promo Products, LLC (Andy Isle, President and Duane Hass, Director) <br />Structure: Participation loan with First National Bank of Elk River <br />Loan Terms: $25,000 at 3% interest, up to 20-year amortization/5-year balloon <br />Purpose: Assist in financing building improvements and fixtures including HVAC, lights, <br />flooring and office remodel <br />Security: 3rd position mortgage on real estate at 19228 Industrial Blvd, Elk River; and <br />personal guarantee from owners <br />Attachments <br />• EDA Finance Committee Meeting Minutes dated November 4, 2010. <br />• EDA Micro Loan Fund Policy and Guidelines <br />• Staff report to EDA Finance Committee re: Promo Products, LLC, November 4, 2010. <br />Action Motion by Second by Vote <br />Follow Up <br />N:\Departments\Community Development\Economic Development\Micro Loan Fund\LOANS\Promo Products\11.8.10 EDA Action <br />Requested.doc <br />