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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 /> <br />Request for Action <br /> <br /> <br /> <br />To <br />Joint Finance Committee <br />Item Number <br />4.0 <br />Agenda Section <br />General Business <br />Meeting Date <br />June 15, 2020 <br />Prepared by <br />Amanda Othoudt, EDD <br />Item Description <br />COVID-19 Small Business Emergency Microloan <br />Program <br />Reviewed by <br />Cal Portner, City Administrator <br />Reviewed by <br /> <br /> <br />Action Requested <br />Review each individual application and provide a recommendation to the Economic Development Authority. <br /> <br />Background/Discussion <br />At their June 3, 2020, meeting, the EDA adopted the COVID19 Small Business Emergency Microloan <br />Program in response to the COVID-19 pandemic. The new program features a $20,000 loan, which includes a <br />forgivable loan component of up to $5,000 for property tax relief to assist our local, small businesses which <br />have been identified in the Governors Executive Orders 20-04 and 20-08. <br /> <br />Program Highlights: <br />1. Businesses affected by Governors Executive Orders 20-04 and 20-08 <br />2. Maximum of $20,000 loan <br />3. Amortized over 10 years <br />4. 5-year balloon, option of a two-year extension <br />5. Zero percent interest <br />6. No equity requirement <br />7. Six-month deferment <br />8. Application fee waived <br />9. Up to $5,000 is eligible for forgiveness for property tax relief for taxes payable in 2020 <br />10. Lease or proof of ownership is required <br />11. In good standing with the city and Secretary of State <br />12. Program funds are on a first-come, first-serve basis for qualifying businesses. <br />13. As a condition for receiving funding, all recipients are required to submit a brief report to the EDA <br />within two months after receiving funds, specifying how the funds were used and providing evidence in <br />the form of paid invoices, statements or similar documentation <br /> <br />Forgivable: Up to $5,000 is eligible for forgiveness for property tax relief for taxes payable in 2020. Lease or <br />ownership documentation is required. Forgiveness for property tax relief will be granted if the borrower has <br />met the reporting requirements listed below.