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ITEM # 6. <br />City <br />E <br />ver <br />MEMORANDUM <br />TO: Economic Development Authority. <br />FROM: Catherine Mehelich, Director of Economic Development <br />DATE: March 14, 201 I <br />SUBJECT: Discuss Draft Amendments to Micro Loan Fund Policy <br />Attachment <br />• EDA Finance Committee Meeting Minutes -November 4, 2010. <br />• 1't Draft Revised Micro Loan Fund Policy <br />Background <br />The Micro Loan Program was last amended in 2006. At its November 2010 meeting, the EDA <br />Finance Committee reviewed the current Micro Loan Policy and discussed several potential <br />amendments. The Committee requests the EDA's feedback on the proposed amendments. <br />Discussion of Proposed Amendments <br />The following proposed amendments were provided by staff and the EDA Finance Committee: <br />• Continue to limit the use of the program to the core Downtown District (south of Hwy 10), <br />with the understanding that it maybe expanded to include the Central Business District <br />(north of Hwy 10) after the Downtown Revitalization Study is complete. <br />• Include provision that in addition to the application fee, all legal and filing costs for direct <br />loans (non-participation loans) will be paid by borrower at loan closing. <br />• Include a provision for Micro Loan applications to be reviewed by the Small Business <br />Development Center as advisory consult for staff and Finance Committee. <br />• Expand the Downtown Rehabilitation Program to include "leasehold improvements" as a <br />permitted use of loan funds in newer buildings (The Bluffs & Jackson Place) with a loan <br />limit of $10,000 and requirement for additional collateral (personal property). <br />• Support for creating a program to finance Energy Efficiency Improvements in <br />Commercial/Industrial Buildings. <br />• Include a provision that `key man life insurance' maybe required as determined by the <br />Finance Committee based on loan amount and ownership partners. <br />Following the EDA's feedback, staff anticipates presenting a revised Micro Loan Fund Policy and <br />Application for the Finance Committee's review and recommendation for final EDA adoption at an <br />upcoming meeting. <br />