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ITEM Ii 7. <br /> . City of <br /> Elk <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> CC: Lori Johnson, Finance Director <br /> FROM: Heidi Steinmetz, Assistant Director of Economic Development <br /> DATE: May 10, 2004 <br /> SUBJECT: Micro Loan Application: Display Solutions, Inc. <br /> Attachments <br /> • Finance Committee Minutes, May 4,2004 <br /> • Staff memo to Finance Committee, May 4, 2004 <br /> • Application—Display Solutions, Inc. <br /> • City of Elk River Micro Loan Fund Policy <br /> Issue <br /> On May 4, 2004, the Finance Committee reviewed a Micro Loan application from Tom <br /> Buchta,Bob Michalek and Jim Studee of Display Solutions. The company is a start-up <br /> manufacturer of two product lines: store fixtures and point-of-purchase displays. <br /> The Finance Committee unanimously recommended that the EDA consider awarding <br /> Display Solutions a$50,000 Supplemental Micro Loan. The loan will be used to purchase <br /> machinery and equipment necessary for Display Solutions to begin operations in Elk River. <br /> The loan is proposed to be structured as a participation loan with American National Bank. <br /> The Finance Committee's recommendation was contingent upon the bank not charging a <br /> servicing fee for the participation loan. American National Bank has agreed to waive the <br /> servicing fee. <br /> Representatives from Display Solutions will be available at the EDA meeting to discuss the <br /> proposed project and answer questions. <br /> Action Requested <br /> Staff requests that the EDA consider approval of the application from Display Solutions for <br /> a $50,000 Supplemental Micro Loan per the recommendation of the Finance Committee <br /> with the following terms: <br /> • Personal guarantee from owners and spouses <br /> • Additional financing sources secured <br />