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Item #7 <br /> ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> MEMORANDUM <br /> TO: Economic Development Authority <br /> FROM: Marc Nevinski, Assistant Director of <br /> ,/.i Economic Development <br /> DATE: September 11, 2000 <br /> SUBJECT: Olde Main Eatery Micro Loan <br /> Issue <br /> The Olde Main Eatery has fallen behind in its Micro Loan payments. The following <br /> remedy has been proposed and is submitted for the FDA's consideration. <br /> Background <br /> In October of 1997 a $50,000 Micro Loan was awarded to the Olde Main Eatery. <br /> The terms of the loan include an 8.5% interest rate with a five-year balloon <br /> mik payment. A review of Olde Main's repayment history indicated that generally the <br /> 111 loan was kept current during the first two years of the term. However, only two loan <br /> payments have been received so far this year, leaving principal and interest due in <br /> the amount of $3446.59 for the period of March 2000 through September 2000. <br /> To remedy the situation, staff has proposed that Olde Main pay its accrued interest <br /> through September and then make regular monthly payments starting October 1, <br /> 2000. Staff recommends that the loan be re-amortized to fit within the currently <br /> established loan term, which would result in a monthly payment of $505.54. Olde <br /> Main's current monthly payment is $492.37. <br /> Action Requested <br /> Staff requests that the EDA consider approving the payment of accrued interest <br /> through September 2000 by the Olde Main Eatery and re-amortizing the loan to <br /> adjust monthly payments to $505.54. <br /> i <br /> 13065 Orono Parkway • P. 0. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />