7.2. EDSR 05-18-2020 - Laserfiche WebLink

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�� Request for Action Elk - River To Item Number Economic Development Authori 7.2 Agenda Section Meeting Date Prepared by General Business May 18, 2020 Amanda Othoudt, ED Director Item Description Reviewed by COVID-19 Small Business Emergency Microloan Cal Portner, City Administrator program Reviewed by Action Requested Approve,by motion, a resolution adopting a COVID-19 Small Business Emergency Microloan program. Background/Discussion The COVID-19 pandemic has affected everyone in our economy,but we know small businesses have been particularly hard hit, especially restaurants, retail, and service establishments. At the April 29 Special Meeting, staff reviewed some policies established by various communities to assist small businesses with financial hardships due to the COVID-19 pandemic. The EDA directed staff to work with the EDA attorney to develop a new emergency microloan program, which includes a forgivable loan component for property tax relief to assist our local, small businesses which have been identified in the Governors Executive Orders 20-04 and 20-08. Program Highlights: ■ Businesses affected by Governors Executive Orders 20-04 and 20-08 ■ Maximum of$20,000 loan ■ Amortized over 10 years ■ 5-year balloon, option of a two-year extension ■ Zero percent interest ■ No equity requirement ■ Six-month deferment ■ Application fee waived ■ Up to $5,000 is eligible for forgiveness for property tax relief for taxes payable in 2020 ■ Lease or proof of ownership is required ■ Forgiveness for property tax relief will be granted if the Borrower has met the reporting requirements ■ Employ between 3-25 employees ■ In good standing with the city and Secretary of State ■ Must have been in business six months prior to the Governors Executive Order The Elk River Vision A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r service, and community engagement that encourages and inspires prosperity ,g /` UR