2.0. EDSR 11-20-1995 - Laserfiche WebLink

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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY MEMORANDUM TO: Economic Development Authority FROM: William Rubin, Executive Director DATE: November 20, 1995 SUBJECT: Micro Loan Request from Internet Five Introduction Internet Five, a start-up high technology company that is a provider of World Wide Web (WWW) services and Web Site Creation software for businesses and individuals, seeks a $37,500 Micro Loan to assist with various start-up costs associated with launching a business endeavor into a more permanent facility. • Background Specifically,the EDA Micro Loan would be used by Internet Five to leverage a Small Business Administration(SBA) low doc loan from a primary lender and owner equity for the purchase of computer equipment, working capital needs, and other expenses of technology start-up. If approved, the Micro Loan would enable'Internet Five to occupy(by way of a lease) approximately 1,000 square feet of office space in Elk River as part of its business endeavors. The $37,500 EDA Micro Loan represents almost 21 percent of Internet Five's $180,800 equipment, working capital, and technology start-up costs. The EDA loan would carry an 8.75 percent interest rate (the current prime rate) over a term of five years. For additional information on this request, EDA Commissioners should refer to a copy of a memo that was sent to the Finance Committee on this matter. The Finance Committee met on November 8 to review this request and the following committee members were present: Jim Simpson, Lloyd Brutlag, Bill Birrenkott, Tom McNair, and Bud Houlton. Following a presentation from the principals of Internet Five, the Finance Committee voted to table a recommendation on this matter until additional information was gathered. This information related to making an inquiry to United Power Association P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420 • Fax: (612) 441-7425 Equal Opportunity Housing and Equal Opportunity Employment