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�J <br /> etyof <br /> ElkRequest for Action <br /> River <br /> To Item Number <br /> Economic Development Authority 7.2 <br /> Agenda Section Meeting Date Prepared by <br /> General Business December 21, 2020 Colleen Eddy, Economic Development Specialist <br /> Item Description Reviewed by <br /> COVID-19 Small Business Emergency Microloan Lori Ziemer,Finance Director <br /> Program Reviewed by <br /> Cal Portner, City Administrator <br /> Action Requested <br /> Approve,by motion,a resolution approving the conversion of the COVID-19 Small Business Emergency <br /> Microloan Program from a payable loan to a forgivable loan. <br /> Background/Discussion <br /> At their May 18, 2020, meeting,the EDA established the COVID-19 Small Business Emergency Microloan <br /> Program to assist small businesses and allocated up to $200,000 from the Economic Development Business <br /> Microloan program as the source of funding. The new program featured a $20,000 loan,with a forgivable loan <br /> component of up to $5,000 for property tax relief to assist local, small businesses identified in the Governors <br /> Executive Orders 20-04 and 20-08. The program offered zero interest loans up to $20,000, amortized over 10 <br /> years,payments deferred for 6-months. <br /> On November 20, 2020, Governor Walz announced a Four-Week Dial Back of his order which again <br /> impacted the businesses who received EDA microloans. As the Governor is expected to extend the dial back <br /> order,and as loan repayments are expected to start on February 1, 2021, staff is proposing an option to <br /> forgive the remaining balances of$15,000 for those businesses who received these funds. <br /> Four businesses received $15,000 repayment loans for a total forgiveness of$60,000 from the EDA's <br /> COVID-19 Small Business Emergency Microloan.Another option several Elk River businesses took <br /> advantage of were grants (which do not have to be paid back) offered through the Sherburne County's <br /> CARES Act Business Relief Grants. <br /> Financial Impact <br /> The EDA allocated funding of this program of up to $200,000 from the general microloan fund account. The <br /> total funds disbursed as of December 16, 2020 were $97,374.00, of which $37,374 is currently forgivable. The <br /> Microloan fund balance is about$828,000.00. <br /> Attachments <br /> ■ Resolution <br /> ■ COVID Loan List <br /> The Elk River Vision <br /> A Y�elcoming community nvith revolutionary and spirited resourcefulness, exceptional P U W E H E o s r <br /> service, and community engagement that encourages and inspires prosperity ,g /` UR <br />