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~j <br />City of <br />Elk -~-. <br />River <br />REQUEST FOR ACTION <br />To Item Number <br />Economic Develo ment Authori <br />Agenda Section Meeting Date Prepared by <br /> May 11, 2009 Annie Deckert, Economic <br /> Develo ment Assistant <br />Item Description Reviewed by <br />Consider Amendment to Micro Loan Terms -Nicole's Salon Catherine Mehelich, Director of <br /> Economic Develo ment <br /> Reviewed by <br />Action Requested <br />The EDA is asked to consider the EDA Finance Committee's recommendation for approval of a <br />1-year extension on the Nicole's Finishing Touch Salon, Inc. micro loan at a 3.0% interest rate <br />with the following conditions: <br />• a reduction of the current monthly payment of $687.61 to $250.00 <br />• a balloon payment due on January 8, 2012 (at which time an extension can be considered <br />if necessary) <br />Background/Discussion <br />The attached staff report to the EDA Finance Committee and Apri127, 2009 committee meeting <br />minutes provide background regarding the amendment to Micro Loan terms request. In addition, <br />EDA Commissioners Motin and Tveite both serve on the EDA Finance Committee and may <br />provide additional comments regarding the committee's review and recommendation. <br />Financial Impact <br />The EDA Micro Loan Fund has a current cash balance of approximately $787,991. The principal <br />balance due on the Nicole's Finishing Touch Salon, Inc. micro loan is $14, 050.19. <br />Attachments <br />• EDA Finance Committee Meeting Minutes dated Apri127, 2009. <br />• EDA Micro Loan Fund Policy and Guidelines <br />• Staff report to EDA Finance Committee re: Nicole's Finishing Touch Salon, Inc. Micro Loan <br />Extension Request, Apri127, 2009 <br />Action Motion by Second by Vote <br />Follow Up <br />