7. EDSR 07-15-2013 Elk REQUEST FOR ACTION
River
TO ITEM NUMBER
Economic Development Authority 7,
AGENDA SECTION MEETING DATE PREPARED BY
July 15,2013 Brian Beeman, Director of Economic
Development
ITEM DESCRIPTION REVIEWED By
Discuss creating a new Microloan Policy from DEED monies Jeremy Barnhart, Deputy Director
Community Operations and
Development
REVIEWED BY
ACTION REQUESTED
Discuss general guidelines for a new Microloan Policy to address financing gaps and direct staff to work
with the EDA Finance Committee in drafting a new policy.
BACKGROUND/DISCUSSION
The EDA has reserve funds of about$400,000 from old Department of Employment and Economic
Development (DEED) monies. Staff has contacted DEED to request their guidelines for developing a policy
to use the funds. DEED staff has requested that the City first, develop a draft policy to use the funds, then
allow the State to review the policy before the EDA approves of the policy. The EDA has established
specific guidelines for three other microloans. Those three microloans exclude certain types of businesses
that don't meet the specific criteria outlined in the policies. The EDA has financed start-up businesses,
however,it has been requested that non-profits be included in the Microloan programs. As far as business
retention,DEED has funds available for local businesses to relocate in Elk River, as long as the business
purchases an existing building or builds a new building. The City has funds available to help them relocate in
Elk River.
Staff would like to see a fourth Microloan Policy to address the gaps in business financing and allowing for a
more flexible policy. This type of a policy would provide the type of financing needed to stay competitive in
retaining existing businesses, allowing financing for non-profits, and providing much needed funds for local,
home-grown start-up businesses.
Noticeable Gaps:
Business Retention/Relocation
Sirjall Business Start-Ups
Business Improvement Projects
Flexibility
Staff would like the EDA to provide a series of general guidelines that will address the funding gaps that the
EDA would like to see in a fourth Microloan Policy. Staff is requesting that the EDA direct staff to work
with the EDA Finance Committee to formulate a fourth Microloan draft policy.
I P O I E R E I 111
NATUR
Attachments
• State DEED Monies Balance Sheet
N:\Departments\Community Development\Economic Development\EDA to move\Agenda\Year2013\7-15-2013\7 sr Request for Action-Fourth
Revolving Loan Policy.docx
7-08-2013 08:35 AM CITY OF ELK RIVER PAGE: 1
BALANCE SHEET
AS OF: JULY 8, 2013
242-STATE DEED
ACCOUNT # ACCOUNT DESCRIPTION BALANCE
ASSETS
242-1010 Cash - State DEED 403,048.33
403,048.33
TOTAL ASSETS 403,048.33
LIABILITIES
EQUITY
242-2400 Fund Balance 402,063.34
TOTAL BEGINNING EQUITY 402,063.34
TOTAL REVENUE 984.99
TOTAL REVENUE OVER/(UNDER) EXPENSES 984.99
TOTAL EQUITY & REV. OVER/(UNDER) EXP. 403,048.33
TOTAL LIABILITIES, EQUITY & REV.OVER/(UNDER) EXP. 403,048.33