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C' of <br /> Request for Action <br /> River <br /> To Item Number <br /> Economic Development Authority 6.4 <br /> Agenda Section Meeting Date Prepared by <br /> General Business August 21,2017 Amanda Othoudt,EDD <br /> Item Description Reviewed by <br /> Budget Amendment for the Jobs Incenrive Cal Portner, City Administrator <br /> Microloan Program Reviewed by <br /> Action Requested <br /> Approve,by motion, the transfer of$66,000 to the Jobs Incenrive Microloan Fund from EDA reserves. <br /> Background/Discussion <br /> The purpose of the Jobs Incenrive Microloan Program is to encourage the creation of high paying and <br /> quality jobs to the city by assisting existing businesses with expansion and attract new businesses to the <br /> city whose local operations will help expand the city's economy. <br /> The program utilizes former Minnesota Investment Fund (MIF) dollars that were issued to the city by the <br /> State of Minnesota. The program has been successful,with two loans issued to date and one pending <br /> application that will be reviewed at the August 27,2017,Joint Finance Committee meeting.The pending <br /> �.- request is for$200,000 to create 74 new jobs for the city paying well over$15 per hour,not inclusive of <br /> benefits. <br /> The program utilizes MIF and therefore there are specific rules and guidelines outlined in the policy.The <br /> local government must follow the RLF guidelines that were submitted with the initial MIF application. <br /> Although the guidelines provide the policies and procedures for the reuse of these funds,any monetary <br /> transfers into this account must also adhere to the same requirements that are followed by the MIF <br /> program. <br /> Financial Impact <br /> The RLF Fund Balance as of August 3,2017 is $134,193.58. The EDA Cash Reserve Balance as of <br /> August 4,2017 is $1,375,749. Transferring$66,000 from the EDA Cash reserves to the Jobs Incenrive <br /> Microloan Fund program could assist a new applicant with the creation of 74 new jobs to the city. <br /> Attachments <br /> N/A <br /> [PSIERFI / 1 <br /> Template Updated 4/14 NAT�� <br />