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<br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To <br />Economic Development Authority <br />Item Number <br />4.0 <br />Agenda Section <br />General <br />Meeting Date <br />April 29, 2020 <br />Prepared by <br />Amanda Othoudt, ED Director <br />Item Description <br />Economic Development Business Microloan Fund <br />Discussion <br />Reviewed by <br />Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />For discussion purposes. <br /> <br />Background/Discussion <br />The COVID-19 pandemic has affected everyone in our economy, but we know small businesses have been <br />particularly hard hit, especially restaurants, retail and service establishments. <br /> <br />There are federal and state programs available to assist these businesses: <br /> <br />The Small Business Administration (SBA) Economic Injury Disaster Loan program: <br />• Federal SBA program <br />• Businesses and non-profits can apply. <br />• Loans can be written for up to $2M and can have a term for up to 30 years (case by case). <br />o Businesses will have an interest of 3.75% attached to the loan. <br />o Non-profits will have an interest of 2.75% attached to the loan. <br />• Payments are deferred for 12-months. <br />• Process time for approval/denial is 3-4 weeks and are on a first-come, first-serve basis. <br /> <br />Following Executive Order 20-15, DEED has also established a loan program to assist small businesses directly <br />and adversely affected and whose industry is named in Executive Orders 20-04 and 20-08 following the <br />COVID-19 pandemic. Small businesses are a vital part of Minnesota’s economy and this program will provide a <br />source of working capital to help businesses sustain operations during this challenging time. Businesses can <br />apply directly through a certified lender. Nonprofits are not eligible for this program. <br /> <br />On a local level, many communities are pulling their resources together to establish low interest, loan programs <br />to assist businesses directly and adversely affected by the Governor’s Executive Orders 20-04 and 20-08 to <br />assist with working capital needs. <br /> <br />Sherburne County has modified their RLF program eliminating the $1,500 application fee through 2020,