Laserfiche WebLink
Elk REQUEST FOR ACTION <br /> River <br /> TO ITEM NUMBER <br /> Economic Development Authority 7, <br /> AGENDA SECTION MEETING DATE PREPARED BY <br /> July 15,2013 Brian Beeman, Director of Economic <br /> Development <br /> ITEM DESCRIPTION REVIEWED By <br /> Discuss creating a new Microloan Policy from DEED monies Jeremy Barnhart, Deputy Director <br /> Community Operations and <br /> Development <br /> REVIEWED BY <br /> ACTION REQUESTED <br /> Discuss general guidelines for a new Microloan Policy to address financing gaps and direct staff to work <br /> with the EDA Finance Committee in drafting a new policy. <br /> BACKGROUND/DISCUSSION <br /> The EDA has reserve funds of about$400,000 from old Department of Employment and Economic <br /> Development (DEED) monies. Staff has contacted DEED to request their guidelines for developing a policy <br /> to use the funds. DEED staff has requested that the City first, develop a draft policy to use the funds, then <br /> allow the State to review the policy before the EDA approves of the policy. The EDA has established <br /> specific guidelines for three other microloans. Those three microloans exclude certain types of businesses <br /> that don't meet the specific criteria outlined in the policies. The EDA has financed start-up businesses, <br /> however,it has been requested that non-profits be included in the Microloan programs. As far as business <br /> retention,DEED has funds available for local businesses to relocate in Elk River, as long as the business <br /> purchases an existing building or builds a new building. The City has funds available to help them relocate in <br /> Elk River. <br /> Staff would like to see a fourth Microloan Policy to address the gaps in business financing and allowing for a <br /> more flexible policy. This type of a policy would provide the type of financing needed to stay competitive in <br /> retaining existing businesses, allowing financing for non-profits, and providing much needed funds for local, <br /> home-grown start-up businesses. <br /> Noticeable Gaps: <br /> Business Retention/Relocation <br /> Sirjall Business Start-Ups <br /> Business Improvement Projects <br /> Flexibility <br /> Staff would like the EDA to provide a series of general guidelines that will address the funding gaps that the <br /> EDA would like to see in a fourth Microloan Policy. Staff is requesting that the EDA direct staff to work <br /> with the EDA Finance Committee to formulate a fourth Microloan draft policy. <br /> I P O I E R E I 111 <br /> NATUR <br />