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Item /f 9 <br /> • �' <br /> cty of <br /> Elk -�-� <br /> River <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Catherine Mehelich, Director of Economic Development�3 <br /> DATE: April 14, 2003 C'' <br /> SUBJECT: Consider Amendments to the Micro Loan Policy <br /> Attachments <br /> • Micro Loan Fund Policy, Revised Sept. 1999 <br /> • City of Elk River Business Subsidy Policy <br /> • Draft-Micro Loan Fund Policy, Revised April 2003 <br /> • • Finance Committee Meeting Notes and Minutes <br /> • Note from Kermit Bode, Custom Cutter Grinding—Feb. 2003 <br /> Issue <br /> Over the past several months staff has been working with the EDA Finance Committee to <br /> revisit the Micro Loan Policy for any amendment issues. Minutes from the Finance <br /> Committee meeting discussions are attached. A final draft of the revised Micro Loan Policy, <br /> as well as the original version,is attached for the EDA's consideration. Following the <br /> EDA's review and discussion,if there aren't any revisions, staff recommends the EDA <br /> consider adoption of the amended Micro Loan Policy. <br /> Primary Amendment Issues <br /> The following items are the primary amendment issues reflected in the attached revised <br /> policy: <br /> ❑ Clarification of lending amount, equity requirements, terms and extensions for each <br /> financing program (II. Loan Programs). <br /> ❑ Established an interest rate floor of 2% for each financing program (II. Loan <br /> Programs). <br /> ❑ Revised wage goal for the Supplemental Financing Program from a minimum wage <br /> of$8/hour to $9/hour (II. Loan Programs). <br /> • <br />