6.4 EDSR 08-21-2017 C' of
Request for Action
River
To Item Number
Economic Development Authority 6.4
Agenda Section Meeting Date Prepared by
General Business August 21,2017 Amanda Othoudt,EDD
Item Description Reviewed by
Budget Amendment for the Jobs Incenrive Cal Portner, City Administrator
Microloan Program Reviewed by
Action Requested
Approve,by motion, the transfer of$66,000 to the Jobs Incenrive Microloan Fund from EDA reserves.
Background/Discussion
The purpose of the Jobs Incenrive Microloan Program is to encourage the creation of high paying and
quality jobs to the city by assisting existing businesses with expansion and attract new businesses to the
city whose local operations will help expand the city's economy.
The program utilizes former Minnesota Investment Fund (MIF) dollars that were issued to the city by the
State of Minnesota. The program has been successful,with two loans issued to date and one pending
application that will be reviewed at the August 27,2017,Joint Finance Committee meeting.The pending
�.- request is for$200,000 to create 74 new jobs for the city paying well over$15 per hour,not inclusive of
benefits.
The program utilizes MIF and therefore there are specific rules and guidelines outlined in the policy.The
local government must follow the RLF guidelines that were submitted with the initial MIF application.
Although the guidelines provide the policies and procedures for the reuse of these funds,any monetary
transfers into this account must also adhere to the same requirements that are followed by the MIF
program.
Financial Impact
The RLF Fund Balance as of August 3,2017 is $134,193.58. The EDA Cash Reserve Balance as of
August 4,2017 is $1,375,749. Transferring$66,000 from the EDA Cash reserves to the Jobs Incenrive
Microloan Fund program could assist a new applicant with the creation of 74 new jobs to the city.
Attachments
N/A
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