Laserfiche WebLink
ITEM 9 <br /> ECONOMIC DEVELOPMENT REVOLVING LOAN FUND <br /> . ELK RIVER, MINNESOTA <br /> POLICY GUIDELINES <br /> 1. PURPOSE <br /> It is the purpose of this document to establish a Revolving Loan <br /> Fund for Economic Development in the City of Elk River. <br /> 2 . POLICY STATEMENT <br /> The Economic Development Authority for the City of Elk River <br /> (EDA) recognizes the need to stimulate private sector investment <br /> into manufacturing facilities and equipment in order to create <br /> new jobs, boost productivity and retain existing jobs for local <br /> residents . It is also the intent of the loan program to provide <br /> affordable loans for expansion and/or rehabilitation of <br /> commercial and retail buildings in order to maintain the <br /> economic viability of Elk River's business districts . <br /> An EDA loan is intended primarily when other conventional loans <br /> NIEN and equity have been maximized, and therefore, the project may <br /> otsivupt(k not occur without an EDA loan supplementing the financing. Such <br /> a loan is not intended to give an unfair competitive advantage <br /> over similar businesses in the community. <br /> • 3. USES <br /> Permitted Fund Uses : <br /> a. Building construction <br /> b. Land acquisition <br /> c. Machinery <br /> d. Equipment <br /> e. Fixtures <br /> f. Industrial Raw Material (Inventory) <br /> g. Working capital <br /> h. Renovation and modernization of buildings <br /> i. Exterior renovation of retail, commercial and industrial <br /> buildings <br /> j . Public infrastructure needed for economic development <br /> expansions <br /> Any project meeting the above criteria, and located or proposed <br /> to be located within the City limits of Elk River, may be <br /> eligible for an Economic Development Revolving Loan. <br /> Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of <br /> O residential units <br /> b. Greater than 25% of total working capital needs <br /> c. Refinancing of existing debt <br /> d. Retail Inventory <br />