8.1. EDSR 04-20-2020Request for Action
To Item Number
Economic Development Authority 8.1
Agenda Section Meeting Date Prepared by
Worksession April 20, 2020 Amanda Othoudt, ED Director
Item Description Reviewed by
Economic Development Business Microloan Fund Cal Portner, City Administrator
Discussion
Reviewed by
Action Requested
For discussion purposes.
Background/Discussion
The COVID-19 pandemic has affected everyone in our economy, but we know small businesses have been
particularly hard hit, especially restaurants, retail and service establishments.
There are federal and state programs available to assist these businesses:
The Small Business Administration (SBA) Economic Injury Disaster Loan program:
Federal SBA program
Businesses and non-profits can apply.
Loans can be written for up to $2M and can have a term for up to 30 years (case by case).
o Businesses will have an interest of 3.75% attached to the loan.
o Non-profits will have an interest of 2.75% attached to the loan.
Payments are deferred for 12-months.
Process time for approval/denial is 3-4 weeks and are on a first-come, first-serve basis.
Following Executive Order 20-15, DEED has also established a loan program to assist small businesses directly
and adversely affected and whose industry is named in Executive Orders 20-04 and 20-08 following the
COVID-19 pandemic. Small businesses are a vital part of Minnesota’s economy and this program will provide a
source of working capital to help businesses sustain operations during this challenging time. Businesses can
apply directly through a certified lender. Nonprofits are not eligible for this program.
On a local level, many communities are pulling their resources together to establish low interest, loan programs
to assist businesses directly and adversely affected by the Governor’s Executive Orders 20-04 and 20-08 to
assist with working capital needs.
Sherburne County has modified their RLF program eliminating the $1,500 application fee through 2020,
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
providing loans at zero percent interest, and offering deferment on all loan payments until October 2020.
Other communities like Grand Rapids, Pine City, Kasson, St. Paul, Meeker County Development Corporation
are offering varying microloan options to the businesses affected by COVID-19.
Staff would like to review a few of these policies and have the EDA direct staff on potentially adding an
additional program within our current microloan program to assist our local businesses.
Financial Impact
N/A
Attachments
City of Elk River Economic Development Business Microloan Program (2017)
Grand Rapids, MN RLF Program
Pine City RLF Program
Meeker County Development Corporation RLF program
Kasson, MN RLF program
City of St. Paul RLF Program (link only)
o https://www.stpaul.gov/departments/planning-economic-development/saint-paul-
bridge-fund/saint-paul-bridge-fund-small
Powered by Nature
Economic Development
Business Microloan Fund
Guidelines, Policy & Application
Amended: May 2011
November 2013
July 2014
November 2014
December 2016
April 2017
August 2017
City of Elk River
Economic Development Division
13065 Orono Parkway
Elk River, MN 55330
763.635.1040
Page 2 of 21 EDA & City Council Approved August 21, 2017
ELK RIVER ECONOMIC DEVELOPMENT
BUSINESS MICROLOAN FUND GUIDELINES, POLICY &
APPLICATION
1. POLICY PURPOSE
The Economic Development Authority for the city of Elk River (EDA) recognizes
the need to stimulate private sector investment into manufacturing and certain
commercial facilities and equipment in order to create new jobs, boost productivity
and retain existing jobs for local residents. Additionally, the need exists to encourage
investment in the expansion and/or rehabilitation of commercial and retail buildings
in order to maintain the economic viability of the city and in the Downtown District.
Subsequently, the purpose of this microloan program is to provide low interest, long-
term (i.e. greater than one year) loans as incentives for new industrial and
commercial development within the city of Elk River and to encourage commercial
and retail business owners in the Downtown District to rehabilitate their existing
buildings.
2. ELIGIBLE BUSINESSES
Any project located or proposed to be located within the city limits of Elk River as
defined by this microloan program, may be eligible for a Microloan as further
defined herein:
• Unless otherwise stated, business must be a for-profit corporation,
partnership, or sole proprietorship.
• Business must be a small business as defined by the Small Business
Administration (SBA).
• Religious, political, and pornographic enterprises are not eligible.
3. MICROLOAN FUND TERMS & CONDITIONS
Loan Structure
All Economic Development Microloans shall be structured as direct loans unless
otherwise approved by the EDA Finance Committee. If a participation loan is
requested, an agreement will be signed by the borrower, primary lender and the
EDA.
The EDA may require additional agreements to be signed by the borrower
(i.e. security agreement, personal guarantees, business subsidy agreement).
Simultaneous Microloans
The simultaneous use of different EDA microloan programs by any one borrower or
for any one project is prohibited.
Loan Repayment
Jobs Incentive funds, including principal and interest received may not be used to
support restaurant, retail, casinos, or sports facilities.
Page 3 of 21 EDA & City Council Approved August 21, 2017
Call of Loan
A loan shall become due and payable in full if a business relocates outside of the city
of Elk River prior to the maturity date of the loan.
Late Payment Charge
A late payment charge of 8% of the installment amount will be enforced following a
grace period of 10 calendar days.
4. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS
All buildings which public funds will be used for construction or renovation are to
be brought into conformance with city ordinances and state building codes.
5. LOAN SECURITY AND GUARANTEES
Applicant must be able to secure the loan by providing the EDA with a minimum of
a subordinate mortgage upon the building and/or assets or other approved collateral
equal to the amount of the loan.
Applicant must demonstrate the financial means to repay the loans, as determined by
the EDA.
Whenever possible, personal, corporate, and/or entity guarantees will be made part
of any loan agreement.
Key person life insurance may be required as determined by the EDA Finance
Committee based on loan amount and company ownership partners.
6. TIMING OF PROJECT EXPENSES
No project should commence until the EDA has approved the loan application.
Any costs incurred prior to the approval of the loan application are not eligible
expenditures.
No building construction should commence until the required city permits are
secured.
The applicant will be responsible for all legal, recording, and other fees required for
protection of a security interest in the loan, payable by a $2,000 processing fee, which
is paid at the time of application. In addition to the processing fee, all legal and filing
fees shall be paid by the borrower at loan closing.
Closing of the Microloan should be simultaneous with the borrower’s primary
funding. The EDA should be given two weeks’ notice before closing.
7. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL
Page 4 of 21 EDA & City Council Approved August 21, 2017
1. All applicants shall first contact a primary lending institution to determine if
additional equity is needed, and if so, how much (if applicable).
2. The applicant shall then meet with city staff to obtain information about the
microloan program, discuss the project, and obtain application forms.
3. The applicant shall complete and submit an application form to the city, along
with a $2,000 processing fee. The fee is used to cover processing expenses and
any remaining funds will be returned to the applicant. The applicant must
provide evidence of their ability to meet the 10% equity requirements or provide
a letter of commitment for conventional financing from the primary lending
institution.
4. The EDA is a governmental entity and as such must provide public access to
public data it receives. Data deemed by Applicant to be nonpublic data under
State law should be so designated or marked by Applicant. See Minn. Sat.
Sections 13.59, Subd. 1, respectively.
5. The application will be reviewed by the city staff to determine if it conforms to
all city policies and ordinances and to consider the following:
a. The availability and applicability of other governmental grants and/or
microloan programs.
b. Whether the proposed project will result in conformance with building
and zoning codes.
c. Whether it is desirous and in the best interests of the public to provide
funding for the project.
6. The EDA Finance Committee and EDA Commissioners will review each
application in terms of its consistency with the goals of the city’s Comprehensive
Plan and Economic Development Strategic Plan and in relation to the project’s
overall impact on the community’s economy. Downtown Revitalization Loan
applications will also be reviewed by a Housing & Redevelopment Authority
Commissioner in conjunction with the EDA Finance Committee. Energy
Efficiency Improvement Loan applications will also be reviewed by an Energy
City Commissioner in conjunction with the EDA Finance Committee.
The EDA Finance Committee will evaluate the project application in terms of
the following:
a. Project Design - Evaluation of project design will include review of
proposed activities, time lines and a capacity to implement the project.
b. Financial Feasibility - Availability of funds, private involvement, financial
packaging and cost effectiveness.
• Appropriate ratio of private funds to Microloan funds.
• Sufficient cash flow to cover proposed debt service as demonstrated
Page 5 of 21 EDA & City Council Approved August 21, 2017
by financial statements and projections.
• Letter of Commitment from applicant pledging to complete the
project during proposed project duration, if the loan application is
approved.
• Letter of Commitment from other financing sources stating terms
and conditions of their participation in the project if applicable.
• Sufficient collateral.
c. All other information as required in the application and/or additional
information as may be requested by the Economic Development staff.
d. Project compliance with all city codes and policies.
e. Microloan Objectives - In addition to quality job and wage
creation/retention requirements, the applicant must meet all Microloan
Fund criteria and demonstrate how the proposed activities will meet at
least one of the following objectives:
• The project contributes to the fulfillment of the city’s approved and
adopted economic development and/or redevelopment plans.
• The project prevents or eliminates slums and blight.
• The project increases the local tax base.
• The project brings a structure into compliance with an existing
building code violation.
7. A written request for an extension shall be accompanied by a copy of current
financial statements and a $500 upfront processing fee. The processing fee is
used to cover processing expenses. The application for an extension beyond the
original term should include a letter of denial from a conventional lender.
8. The EDA Finance Committee will recommend the approval, denial, or request a
resubmission. A recommendation from the Finance Committee will be
forwarded to the EDA for recommendation of approval, denial to the City
Council for final action.
8. MICROLOAN POLICY REVIEW
The above criteria will be reviewed on an annual basis to ensure that the policies
reflected in this document are consistent with the economic development goals set
forth by the city.
9. RIGHT OF REFUSAL
The EDA may deny any application if it is found not consistent with the goals of the
city’s Comprehensive Plan and Economic Development Strategic Plan and in
relation to the project’s overall impact on the community’s economy.
Page 6 of 21 EDA & City Council Approved August 21, 2017
10. COMPLIANCE WITH MN BUSINESS SUBSIDY LAW
All developers/businesses receiving financial assistance from the City of Elk River
shall be subject to the provisions and requirements set forth by the City’s Business
Subsidy Policy as amended and Minnesota Statutes Sections 116J.993 to 116J.995
(the “Minnesota Business Subsidy Law”) if applicable.
11. Agreement to Pay Costs of Review
It is the policy of the city of Elk River to require applicants to pay costs incurred by
the city in reviewing and acting upon applications, so that these costs are not borne
by the taxpayers of the city. These costs include all of the city’s out-of-pocket costs
for expenses, including the city’s costs for review of the application by the city’s
Financial Consultant and City Attorney, or other consultants, recording fees, and
necessary publication costs.
The application processing fees cover anticipated costs; costs incurred above the
application fee will be invoiced as they are incurred, and payment will be due within
thirty (30) days. Any unused portion of the application fee will be returned to the
applicant. If payment is not received as required by this agreement, the city may
suspend the application review process and may deny the application for failure to
comply with the requirements for processing the application. Payment for costs will
be required whether the application is granted or denied.
12. Microloan Programs
In order to meet the economic and community development objectives of the EDA,
five distinct microloan programs exist within the Business Microloan Fund.
Industrial Incentive Loan
Purpose: The purpose of the Industrial Incentive Loan is to encourage
industrial and high technology business development that supports
the tax base and brings quality jobs to the city.
Amount: Up to $200,000 of secondary financing not to exceed 20% of the
total project cost.
Remaining
Principal: Must have private-sector commitments for 50% of the project cost.
Borrower must provide 10% or more of project financing.
Rate: Fixed at 3%
Term: Loans must mature within 5 years, but must be amortized over a
longer period of time. The balloon payment must not be longer than
the balloon payment of the participating bank if applicable. Loans
may be amortized up to the following limits:
20 years on real estate uses;
Page 7 of 21 EDA & City Council Approved August 21, 2017
10 years on equipment uses.
Extension: In the event that the Borrower is unable to payoff the loan or
refinance the Microloan at the end of five years, the loan may be
extended up to two additional years at 3% interest.
Criteria: Borrower must be an industrial or high technology business and create
or retain one new full-time job for each $20,000 loaned within 2 years.
Said jobs must pay a minimum wage of $15.00 per hour excluding
benefits required by law. Loans of $75,000 or more shall meet the city
of Elk River Business Subsidy Policy for the creation of new jobs at a
minimum wage of $15.00 per hour excluding benefits required by law,
as well as a 5-year location requirement.
In the case where multiple sources of public financing are requested
(e.g. Microloan and Tax Increment Financing) job creation goals shall
not be double-counted.
Borrower must comply with the provisions of the city’s Industrial and
Business Park zoning ordinances as applicable.
Permitted Fund Uses:
a. Building construction
b. Land acquisition
c. Machinery
d. Furniture, fixtures, and equipment (FF&E)
e. Renovation and modernization of buildings
f. Public infrastructure needed for economic development expansions
g. Investment real estate with a minimum of 50% of the space pre-leased
Ineligible Fund Uses:
a. Expenditures for the construction and/or renovation of residential units
b. Inventory
c. Refinancing of existing debt
d. Working capital
Downtown Revitalization Financing Loan
Purpose: The Downtown Revitalization Financing Loan is available to business
and property owners in the Downtown Area primarily for the
rehabilitation and restoration of older buildings, as well as new business
development. Non-profit organizations may be considered. The
Downtown Area shall be described as that area in the attached in
Exhibit A.
Amount: Up to $74,999 of secondary financing not to exceed 20% of the total
Page 8 of 21 EDA & City Council Approved August 21, 2017
project cost.
Remaining
Principle: Must have private-sector commitments for 50% of the project cost.
Borrower must provide 10% or more of project cost.
Rate: Fixed at 3%.
Term: Financing with a balloon payment in up to 5-years. Loans may be
amortized up to the following limits:
20 years on real estate uses;
10 years on equipment uses.
Extension: In the event that the Borrower is unable to payoff the loan or
refinance the Microloan at the end of five years, the loan may be
extended up to two additional years at 3% interest.
Criteria: At a minimum, 20% of Microloan dollars must be used for the
improvement of the building façade, with exceptions to be considered
when it appears the façade improvements are not necessary. Financing
of leasehold improvements will be considered at a limit of $25,000.
Permitted Fund Uses:
a. Building construction
b. Renovation and modernization of buildings
c. Furniture, fixtures, and equipment (FF&E)
d. Exterior renovation of retail or commercial buildings
e. Financing of leasehold improvements including façade improvements
will be considered at a limit of $25,000
f. Expenditures for the construction and/or renovation of residential
units
Ineligible Fund Uses:
a. Inventory
b. Refinancing of existing debt
c. Working capital
Energy Efficiency Improvement Loan
Purpose: The Energy Efficiency Improvements Loan is available to property
owners of commercial or industrial buildings in Elk River to provide
low interest loans to businesses to invest in energy efficiency and
improve their profitability through reduced energy costs. In addition,
the microloan program helps the city of Elk River use energy
conservation as an economic development tool. Non-profit
organizations may be considered.
Amount: Applicants may apply for the cost of improvements up to $74,999
Page 9 of 21 EDA & City Council Approved August 21, 2017
Equity: Must have a minimum of 10% equity provided by the borrower.
Rate: Fixed at 3%
Term: The maximum maturity date of the loan will be determined by the
useful life of the improvement and the energy payback achieved as
determined by ERMU.
For projects that have a shorter length of payback (2-5) years as
calculated according to energy savings, the loans will have an initial
maturity of up to 5 years from the date of closing.
Longer life improvements (6-15 years) may apply for a longer
maturity of up to 10 years.
Criteria: Microloan funds shall be spent on energy efficiency improvements
outlined below or related building improvement costs
Applicant must agree to energy audits conducted under the utility
company’s Conservation Improvement Program (CIP). If warranted,
engineering studies then are performed on facilities with conservation
opportunities under the utility company’s CIP Program.
Energy efficiency is defined as improvements that are rebatable by
the Elk River Municipal Utilities (ERMU) or the utility provider for
the property if not ERMU. Proposed energy efficiency improvements
that do not qualify for the utility’s prescriptive rebate program will be
reviewed and approved by the utility company servicing the upgrade
measures (e.g. Elk River Municipal Utilities, Connexus, CenterPoint)
along with a letter indicating eligible utility rebates.
Utility rebates as applicable will be assigned to the Elk River EDA
and applied toward principal repayment of the loan.
An Elk River Energy City Commission member will be asked to
participate in the EDA Finance Committee review.
The loans will be secured by personal and corporate guarantees, and
if applicable a lien on equipment financed and subordinate mortgage
on the property.
Installation must be certified through a licensed contractor and
electrician. New construction is eligible when participating with a
utility company rebate program. Eligible costs shall include only
incremental costs over industry design standards.
Permitted Fund Uses:
Page 10 of 21 EDA & City Council Approved August 21, 2017
a. Energy efficiency measures installed in or on a building include:
b. Facility systems optimization (commissioning/re-commissioning)
c. Facility systems control improvements
d. Process efficiency improvements (CenterPoint Energy)
e. Lighting efficiency improvements
f. Heating, ventilation and air conditioning system modifications
g. Exterior envelope improvements
h. Motor and pump efficiency improvements
i. Ground-source heat pump systems used to heat or cool a facility
j. Installation of equipment or devices that use renewable energy sources to
generate electricity or heat or cool a building including solar electricity
(photovoltaic), wind turbine or solar thermal.
Ineligible Fund Uses:
a. Inventory
b. Refinancing of existing debt
c. Working capital
d. Expenditures for the construction and/or renovation of residential units
Micro-Brewery Loan
Purpose: The Micro-Brewery microloan is available to business and property
owners located within the city of Elk River. Amount: Up to $74,999 of secondary financing not to exceed 20% of the
Total project cost.
Equity: Must have private-sector commitments for 50% of the project cost.
Borrower must provide 10% or more of project financing.
Rate: Fixed at 3%.
Term: Financing with a balloon payment in up to 5-years. Loans may be
amortized up to the following limits:
10 years on equipment uses
Extension: In the event that the Borrower is unable to obtain conventional
financing to replace the Microloan at the end of five years, the loan
may be extended up to two additional years at a market rate of
interest.
Criteria: At a minimum, 50% of Microloan dollars must be used for the
purchase of equipment.
Loans must be supported by sufficient collateral, which will include
personal guarantees.
Page 11 of 21 EDA & City Council Approved August 21, 2017
Permitted Fund Uses:
e. Renovation and modernization of buildings
f. Furniture, fixtures, and equipment (FF&E)
g. Exterior renovation of retail or commercial buildings
h. Financing of leasehold improvements including façade improvements
will be considered at a limit of $25,000
Ineligible Fund Uses:
a. Inventory
b. Refinancing of existing debt
c. Working capital
Page 12 of 21
ELK RIVER ECONOMIC DEVELOPMENT
MICROLOAN FUND APPLICATION
1. CONTACT INFORMATION
Legal Name of Business:
Project Site Address:
City / State / Zip
Contact Person(s)
Business Phone Fax
Home Phone Email
Check One: Proprietor Corporation Partnership
Federal ID # State ID #
2. NATURE OF LOAN REQUEST
Which Microloan Program are you applying for?
Industrial Incentive Loan
Downtown Revitalization Financing Loan
Energy Efficiency Improvement Loan
Micro-Brewery Loan
Amount Requested: $ Total Project Cost: $
Type of project: New construction for a start-up business
New construction for an existing business
On site expansion
Equipment purchase
Remodeling: (circle one) Commercial / Retail / Industrial
Other
Page 13 of 21
Please give a brief summary of your business and its products or service:
Please give a brief summary of the project:
Please describe how this loan will impact your project:
3. FINANCING
Project Costs
Land $
Site improvements $
Buildings (attach plans & costs) $
Equipment/Machinery/Fixtures
(attach list and estimated costs) $
Remodeling $
Industrial Inventory/Working Capital $
Other (attach description) $
Total Costs $
Comments:
Page 14 of 21
Proposed Sources of Financing
SOURCE NAME TERMS AMOUNT
Bank Loan __________ $_________
Bank Loan __________ $_________
Other Private Funds __________ $_________
Applicant Contribution $_________
Other __________ $_________
Fed Grant/Loan __________ $_________
State Grant/Loan __________ $_________
EDA Microloan __________ $_________
Tax Increment Financing $
Tax Abatement $
Total Financing $_________
Collateral Assignments
Lien
Description of Collateral Position
To Bank 1
To Bank 2
To Private Sources
To Other Sources
To Federal Govt
To State
To EDA Microloan
Page 15 of 21
Value of Collateral
Book Value Cost Existing Liens
Land $_________ $___________ $__________
Buildings $_________ $___________ $__________
Machinery & Equip. $_________ $___________ $__________
Other__________ $_________ $___________ $__________
Other__________ $_________ $___________ $__________
4. JOB & WAGE GOALS
Present # of Employees_____________ Total Payroll_____________
Jobs To Be Created*
Please provide the following information on jobs you expect to create within 2-years.
Job Title
Number
of Jobs
Average
Hourly
Wage
Annual
Salary
Are the Jobs
Permanent or
Temporary?
Expected
Hiring
Date
*If loan is for job retention only, please explain in Business Plan.
Microloan Program Objectives
(Check all that apply)
_____ The project contributes to the fulfillment of the city’s approved and adopted
economic development and/or redevelopment plans.
_____ The project prevents or eliminates slums and blight.
_____ The project increases the local tax base.
_____ The project brings a structure into compliance with an existing building code
violation.
Page 16 of 21
5. PROJECT CONTACTS
Attorney
Name
Address
Phone ______
Accountant
Name ______
Address
Phone
Financing Sources (lenders, partners, etc…)
Name ______
Address
Phone
Name ______
Address
Phone
Parent Company
Name ______
Address
Phone
Others
Name ______
Address
Phone
Name ______
Address
Phone
Page 17 of 21
6. ATTACHMENTS CHECK LIST
Please attach the following:
______A) Written Business Plan:
1. Description of Business
2. Ownership
3. Management
4. Date Established
5. Products/Services
6. Future Plans
_______B) Financial Statements for Past Three Years and Year to Date
1. Profit & Loss Statements
2. Balance Sheets
_______C) Financial Projections for up to Three Years
_______D) A Project Proforma to include:
1. Projected revenues,
2. Operating expenses,
3. Net Operating Income, and
4. Annual Debt Service and Loan Payments.
_______D) Resume of Owner/Management
_______E) Personal Financial Statements of Proprietor, Partners,
Guarantors
_______F) Letter of Commitment from Applicant Pledging to Complete
During the Proposed Project Duration
_______G) Letter of Commitment from the Other Sources of Financing,
Stating Terms and Conditions of their Participation in
Project
_______H) Processing Fee of $2,000
Page 18 of 21
7. AGREEMENT
I / We certify that all information provided in this application is true and correct to the best
of my/our knowledge. I / We authorize the city of Elk River and the Finance Committee to
check credit references and verify financial and other information. I / We agree to provide
any additional information as may be requested by the city and the Finance Committee.
The undersigned has received the city’s policy regarding the payment of costs of review,
understands that reimbursement to the city of costs incurred in reviewing the application will
be required, agrees to reimburse the city as required in the policy and make payment when
billed by the city, and agrees that the application may be denied for failure to reimburse the
city for costs as provided in the policy.
APPLICANT SIGNATURE _______
BY
DATE
Page 19 of 21
Exhibit A: Downtown Area
Page 20 of 21
MICROLOAN APPLICATION SCORING WORKSHEET
1. The project meets the criteria set forth in the appropriate the Microloan policy.
a) Meets at least one of the microloan objectives in Section 7; 6(e).
c) Consistent with all city plans and ordinances.
d) Meets the wage requirements as defined in the city’s business subsidy policy.
2. Ratio of Private to All Public Investment in Project: Points: _____
$ Private Investment 5:1 5
$ Public Investment 4:1 4
Ratio Private: Public Financing 3:1 3
2:1 2
Less than 2:1 1
3. Job Creation in the City of Elk River: Points: _____
Number of new jobs as a result of the project. 25+ 5
Number of existing/retained jobs 20+ 4
Total 15+ 3
10+ 2
Less than 10 1
4. Ratio of Public Investment to Job Creation: Points: _____
$ Public Investment $8,000 or less 5
Number of new jobs created/retained $10,000 or less 4
$ of Public Investment per new job $12,000 or less 3
$15,000 or less 2
Over $15,000 1
5. Wage Level of jobs created/retained or relocated Points: _____
Minimum hourly wage Over $21/ hour 5
of jobs created/retained: $18-21 / hour 4
$15 / hour 3
6. Project size: Points: _____
The project will result in the construction 40,000+ 5
of square feet 30,000+ 4
20,000+ 3
10,000+ 2
10,000 or less 1
TO BE COMPLETED BY CITY STAFF
Page 21 of 21
7. Market Value/Tax Base Generation: Points: _____
The project will result in a per square foot Industrial Commercial
estimated market value (land and building) $80/sf+ $110/sf+ 5
of $70/sf+ $100/sf+ 4
$60/sf+ $90/sf+ 3
$50/sf+ $80/sf+ 2
$40/sf+ $70/sf+ 1
8. Type of Project: Points: _____
100% Owner Occupied 5
Mix Owner Occupied & Investment 4
Investment Property 3
9. Use: Points: _____
Industrial or Business Park Project 5
Commercial/Retail Rehabilitation/Redevelopment 4
______ Downtown Revitalization or Microbrew 3
10. Likelihood that the project will result in Points: _____
unsubsidized, spin-off development. High 5
Moderate 3
Low 1
11. Point Adjustments Point Adjustments:
The project contributes to the goals of Energy City. 5 points
• Product promotes sensible use of energy, OR
• Project utilizes significant energy efficient design &/or
materials in construction.
Sub - Total Points: of a possible 45 points.
Total Points:
Overall project desirability: High 50-35 points
Moderate 34-29 points
Low 28-20 points
Not Eligible 19-0 points
Grand Rapids Economic Development Authority
Emergency Working Capital Loan Policy
Consistent with their mission to advance measures that support and grow the economy, the Grand Rapids
Economic Development Authority (GREDA) has taken action to establish an emergency working capital loan
program to assist and help sustain our community businesses during these uncertain and stressful economic
conditions associated with the current COVID-19 pandemic.
1. Goals and Objectives
Provide emergency financing for businesses located in the City of Grand Rapids experiencing
financial hardships, due to the executive orders issued by Governor Walz related to the COVID-
19 Pandemic.
Allocate $500,000 in GREDA resources available through Program Related Investments from the
Blandin Foundation.
Facilitate business survival, especially small businesses, during this pandemic.
To the greatest extent possible, enhance the retention and re-establishment of jobs in the City.
To the greatest extent possible, direct the funds to those businesses most severely impacted by this
pandemic.
2. Eligible Applicants
All businesses, located in the City limits of Grand Rapid that have been impacted by the social
and economic disturbance resulting from the COVID-19 Pandemic. Those business categories
referenced in Governor Walz’s Executive Orders 20-04 and 20-08 may be given preference.
All eligible applicants must be registered with the Minnesota Secretary of State as a Minnesota
based business as of December 1, 2019.
All eligible applications must be current with their local property taxes.
3. Eligible Loan Activities
Operating capital to assist the business with sustaining itself, such as; debt service payments,
accounts payable, operating expenses, accruals, and inventory necessary to resume or re-structure
operations of the business.
Other activities having sufficient merit as determined by the GREDA Board of Commissioners on a
case-by-case basis.
4. Other Considerations
Compliance with all government regulations.
Emergency Working Capital Loan funds will be available for as long as GREDA determines
prudent, and GREDA reserves the right to limit the amount of funds available for this program at
any time.
5. Conflict of Interest
Any GREDA Commissioner that may indirectly or directly gain financially from loan transactions
shall immediately inform the Board of any potential conflict of interest.
If a potential conflict of interest exists, all necessary steps will be taken to ensure that the loan
application is processed in full accordance with GREDA policies, and local and State regulations.
6. Loan Conditions
Maximum loan amount is $15,000.00
Minimum loan amount is $1,000.00
Interest rate will be zero percent
Loans will be fully amortized over their 60 months term, beginning with the first required payment.
Loan repayments will be deferred for 6 months following loan disbursement
There will be no penalty for early repayment.
Upon default of loan, or the permanent closure or sale of the business, the loan immediately
becomes due and payable in full
Loans are not transferable unless the transfer is approved by GREDA
Loans will be serviced by the City of Grand Rapids Finance Department.
Loan payment method will be automatic withdrawal ("ACH")
7. Application Requirements
Completed "Emergency Working Capital Loan" application and its required submittals
Applications will be reviewed by a minimum of two GREDA Commissioners and the Executive
Director and will be acted upon by the full Board of GREDA Commissioners.
8. Collateral
Loans will be secured with a Promissory Note, the form of which will be provided by GREDA.
9. Reporting
At 6 months and one year following loan disbursement, loan recipients will be required to report
on the impact of the loan in areas such as; jobs retained and jobs created.
City of Pine City
315 Main St S. Suite 100
Pine City, MN 55063
320-629-2575
COVID-19 Emergency Relief Loan Application
Business Information
Legal Business Name: State Tax ID:
Federal EIN:
Individual Corporation Partnership LLC Other -
Physical Address: City State Zip
Mailing Address: City State Zip
How long has this business been in operation?
Business Owner(s) Information
Are you the owner of the building/property where your business is located? Yes No
How long have you owned / operated this business?
Owner 1 Full Name: Social Security #:
Address: City State Zip
Work Phone: Home Phone: Cell Phone:
Owner 2 Full Name: Social Security #:
Address: City State Zip
Work Phone: Home Phone: Cell Phone:
If there are more than 2 owners please attach an additional sheet.
Statement / Details regarding need and use of funds
(you may attach a detailed description to your application if needed)
Amount Requested
$
The foregoing information is submitted in order to obtain loan funds through the City of Pine City’s COVID-19 Emergency Relief Loan Fund
and is true and correct. I understand that the loan will be administered through the City of Pine City and agree to make my payments to the
City. I hereby agree to abide by all of the terms and guidelines of which I am familiar.
Signature: Date:
Signature: Date:
FOR OFFICE USE ONLY
Received by City ____________________________
Approved by EDA ____________________________
Loan Effective ____________________________
Amount Requested ____________________________
City of Pine City COVID-19 Emergency Relief Loan Program
Guidelines
•The Loan Fund will be made available to existing commercial businesses located in the City of Pine City.
•Borrower must demonstrate the ability to repay the loan (reference check with bank).
•No owner match is required.
•Funds are intended to help Pine City businesses who have been affected by the circumstances surrounding
the COVID-19 pandemic.
•Borrower(s) must attach a copy of current driver’s license(s).
•To participate in this program, all accounts as of March 1, 2020 owing to the City of Pine City and others
must be current (taxes, special assessments, utilities, other loan programs). The EDA Loan Committee will
consider releasing this requirement on a case-by-case basis.
Awarding of Loans
•The EDA loan committee will review all loan applications for eligibility. Additional requests for information
may be required to award a loan, not limited to what is outlined within this document.
•Loans are awarded on a first-come, first served basis. First-come meaning – all required documentation
has been submitted and approved.
•Funds will be released after required documents have been signed and the EDA board approves the loan.
Loan Terms
•Loans will be interest free and payments will be deferred for 6 months from the date of the loan.
•The maximum term will be up to 30 months.
•The maximum loan amount will be up to $5,000 per business.
•Loan payments are required to be set up on monthly direct deposit into the City’s account.
•A Loan Agreement, Promissory Note and Personal Guaranty are required as security for the loan.
Checklist
Completed and signed application
Copy of borrower(s) Driver’s License(s)
Direct deposit forms (upon approval)
Most recent tax return forms and/or financial statements
Detailed information (narrative) regarding how your business has been negatively affected by the
COVID-19 pandemic, what your needs are, and how the money will be used.
Questions can be addressed to Community Development Director Lezlie Sauter
320-438-1020 lsauter@pinecitygov.com
Meeker County Economic Development Authority Page 1 of 4
Meeker County Economic Development Authority (MCEDA)
COVID-19 Business Assistance Loan Policy
It is the mission of Meeker County Economic Development Authority (MCEDA) to assist in stimulating the
economy of the Meeker County area and improving the overall County business environment.
During this time of uncertain and stressful economic conditions associated with the current COVID-19
pandemic, MCEDA has decided it is in the best interest of the County and its businesses to create an
emergency assistance fund for those businesses that have been forced to close or significantly reduce their
operations due to the Governor of Minnesota issuing executive orders for businesses to cease operations that
are considered to have a greater potential for community spread of the COVID-19 virus.
MCEDA shall disclose no information, recommendations or statements made by any individual (including a
loan officer, MCEDA staff person, or MCEDA Board Member). No information may be divulged directly or
indirectly to any applicant, or to any of its representatives or any other unauthorized individual.
1. Goals and Objectives
➢ Ensure that all loans will be paid back
➢ Ensure that all loans will be good for the County and assist with business survival during this pandemic
➢ Provide emergency financing for businesses that are suffering financial hardships due to the COVID-19
business restrictions
2. Eligible Applicants
➢ Businesses cited in Governor’s Emergency Executive Order 20-04 as follows:
1. Beginning no later than March 17, 2020 at 5:00 pm, and continuing until March 27, 2020 at 5:00 pm,
the following places of public accommodation are closed to ingress, egress, use, and occupancy by
members of the public:
a. Restaurants, food courts, cafes, coffeehouses, and other places of public accommodation
offering food or beverage for on-premises consumption, excluding institutional or in-house food
cafeterias that serve residents, employees, and clients of businesses, child care facilities, hospitals,
and long-term
care facilities.
b. Bars, taverns, brew pubs, breweries, microbreweries, distilleries, wineries, tasting rooms,
clubs, and other places of public accommodation offering alcoholic beverages for on-premises
consumption.
c. Hookah bars, cigar bars, and vaping lounges offering their products for on-premises
consumption.
d. Theaters, cinemas, indoor and outdoor performance venues, and museums.
e. Gymnasiums, fitness centers, recreation centers, indoor sports facilities, indoor exercise
facilities, exercise studios, and spas.
f. Amusement parks, arcades, bingo halls, bowling alleys, indoor climbing facilities, skating
rinks, trampoline parks, and other similar recreational or entertainment facilities.
g. Country clubs, golf clubs, boating or yacht clubs, sports or athletic clubs, and dining clubs.
➢ And those businesses cited in Governor’s Emergency Executive Order 20-08 as follows:
Paragraph 1.e. of Executive Order 20-04 is amended by the following additions (indicated by underlined
text) and deletions (indicated by strikethroughs): Gymnasiums, fitness centers, recreation centers,
indoor sports facilities, indoor exercise facilities, exercise studios, and spas tanning establishments,
body art establishments, tattoo parlors, piercing parlors, businesses offering massage therapy or similar
body work, spas, salons, nail salons, cosmetology salons, esthetician salons, advanced practice
esthetician salons, eyelash salons, and barber shops. This includes, but is not limited to, all salons and
Meeker County Economic Development Authority Page 2 of 4
shops licensed by the Minnesota Board of Cosmetologist Examiners and the Minnesota Board of
Barber Examiners.
All other provisions of Executive Order 20-04 remain in effect.
➢ All applicants must have a physical, commercial approved location, whether leased or owned, that is
located within Meeker County.
➢ All applicants must be current with Meeker County property taxes
Applicants are encouraged to review Governor’s Emergency Orders 20-04 and 20-08 for further
definition and clarification of businesses that are or are not eligible for this COVID-19 Business
Assistance Loan. MCEDA retains final authority to determine if a business is eligible or not.
3. Eligible Loan Activities
➢ Operating Capital to assist the business with sustaining itself until longer-term assistance programs
area available.
➢ Other activities having sufficient merit as determined by the MCEDA Board on a case-by-case basis.
4. Other Considerations
➢ Compliance with all government regulations.
➢ COVID-19 Business Assistance Loan funds will be available for as long as MCEDA determines
prudent, and MCEDA reserves the right to limit the amount of funds available for this program at any
time.
5. Conflict of Interest
➢ Any Board member that may indirectly or directly gain financially from loan transactions shall
immediately inform the Board of any potential conflict of interest.
➢ If a potential conflict of interest exists, all necessary steps will be taken to ensure that the loan
application is processed in full accordance with MCEDA Board policies, and local and State
regulations.
6. Loan Conditions
➢ Maximum loan amount is $5,000
➢ Interest rate will be zero percent
➢ Any fees incurred will be due from borrower at the time of closing
➢ Loans will be for a maximum length of 24 months
➢ Loan repayments may be deferred for up to 6 months
➢ Repayment terms for loans will be determined on an individual basis, so long as the total
principal balance is repaid within 24 months of the date of the first draw of loan funds by the
borrower
➢ Upon default of loan, or the permanent closure or sale of the business, the loan immediately
becomes due and payable in full
➢ Loans are not transferable unless the transfer is approved in writing by the MCEDA Board
➢ Loan payment method will be automatic withdrawal ("ACH")
7. Application Requirements
➢ Completed "COVID-19 Business Assistance Loan" application
8. Collateral
➢ Loans will be secured with a blanket business UCC lien in the amount of the loan and to the benefit of
MCEDA
➢ Personal and/or corporate guarantees will be required for all that own 20% or more of the applicant
business
Meeker County Economic Development Authority Page 3 of 4
Meeker County Economic Development Authority (MCEDA)
COVID-19 Business Assistance Loan Application
Applicant Information
DBA - Legal Name of the Business:___________________________________________________________________
❑ Sole Proprietorship ❑ Partnership ❑ Corporation ❑ LLC
Length of Time
in Business Years Months Fed
Tax Id#
MN State
License
Mailing Address City ZIP
Location Address City ZIP
Business Phone ( ) Business FAX ( )
E-Mail Address Web Address
Contact Name Title
Amount of Funding
Requested
$________________________
Principal #1
Name DOB SS#
Address City ZIP
Percentage of Ownership __________%
Principal #2
Name DOB SS#
Address City ZIP
Percentage of Ownership __________%
Primary Lender
Name Phone Ref#
Address FAX
Contact Title
Applicant certifies that all information provided, including legal status, is true, current, and complete.
Applicant authorizes MCEDA to utilize credit bureau/reporting agencies for verifying the accuracy of any information
provided.
Applicant authorizes the primary lending institution to provide MCEDA with a recent credit report if one has been prepared.
By signing below, I/We represent that the information presented on this application is complete and accurate and that all loan
proceeds will be used for business working capital related purposes.
Principal #1______________________________________ Principal #2______________________________________
Date ____________________________________________ Date ___________________________________________
Meeker County Economic Development Authority Page 4 of 4
Meeker County Economic Development Authority (MCEDA)
LOAN PROGRAM POLICY
AUTHORIZATION FOR RELEASE OF INFORMATION
I (We) hereby supplement the Loan Application of _______________________, 20 ____, and agree
as follows:
1. Meeker County Economic Development Authority (Lender) is authorized to make credit checks or
inquiries concerning my (our) creditworthiness, credit standing, credit capacity, character, general
reputation, personal characteristics, criminal background check, any matters relating to assets,
liabilities, and references on said application and support information, any subsequent application
and support information; or any loan servicing request or action on any loan resulting from said
applications;
2. Creditors, including but not limited to Credit Reporting Agencies, State and National Banks,
Federal Land Banks, Production Credit Associations, the Farmers Home Administration and
others, are hereby authorized to disclose to Lender any information relat ive to any of my (our)
loans, accounts, purchases, other financial transactions, production or marketing information or
other pertinent information, whether past, present, or future, with said creditors;
3. Lender is authorized to share with credit reporting agencies and creditors doing business, or who
may do business with me (us), information regarding this extension of credit, any subsequent
transactions or loan servicing actions resulting from any extension of credit, and my (our) general
credit history;
4. Photocopies of this authorization may be presented to and relied upon by my (our) creditors and
others as evidence of my (our) authorization to release information to the Lender.
_______________________________ ________________
Applicant Date
_______________________________ ________________
Applicant Date
1
SHORT-TERM BUSINESS INTERRUPTION LOAN PROGRAM
GUIDELINES AND POLICIES
City of Kasson Economic Development Authority
STBIL – I. INTRODUCTION – PURPOSE AND SOURCE OF FUNDS
The purpose of this policy is to provide written guidelines for the processing and awarding of
Short-Term Business Interruption Loans through the City of Kasson Economic Development
Authority (EDA) Revolving Loan Fund (RLF) Program in response to the adverse effect of
COVID-19 on local businesses. This document is intended to be used as the procedure for the
EDA to follow in granting and administration of Short-Term Business Interruption Loans.
The scope of the RLF program is being expanded to include the STBIL Program.
The purpose of the Short -Term Business Interruption Loan Program is to assist existing
businesses with their immediate cash flow needs in response to the adverse effects COVID-
19 has had on their business in Kasson. The program is intended to be layered with other
relief programs such as the Minnesota Department of Employment and Economic
Development (DEED) and Small Business Administration (SBA) Economic Injury Disaster
Loan Program. The Short-Term Business Interruption Loan Program will draw on funds in
the City of Kasson’s RLF Program.
STBIL – II. ELIGIBILITY
• Businesses whose primary place of business is located in Kasson (or within 2,000 feet of
City boundaries.
• Businesses must have been in operation prior to March 1, 2020.
• Businesses must have applied for MN DEED Emergency Loan Program for small
businesses or SBA Economic Injury Disaster Loan Program and have a stated need for
immediate funds to maintain their business in good stature.
STBIL – III. LOAN TERMS, AMOUNT, AND LIMITATIONS
• Maximum loan amount of $5,000 per business:
o Loan amount is based on fixed costs for the business in February.
o Loan amount is flexible to support the needs of the business.
• Interest rate of 0%.
• Funds to be released within 30 days after loan application approval.
• Loan payment deferred to 6 months from the date of first disbursement.
• Loans repaid at $100 per month until loan is fully paid.
• Loans will secured by a blanket chattel via a Uniform Commercial Code (UCC) filing.
STBIL – IV. ELIGIBLE USES FOR LOAN FUNDS
Loan funds may be used to cover expenses and fixed costs related to:
• Rent, leases, or mortgage payments.
2
• Utility bill payments.
• Employee salaries.
STBIL – V. LOAN REVIEW
The Loan Committee shall review all information that will provide decision-making assistance as
to the adverse effect of COVID-19 on the business and to the amount of loan assistance
requested. Generally, the following criteria will be used in reviewing loan applications:
• Collateral coverage
• Job retention
• Credit worthiness of applicant
• Impact of COVID-19 on the business
• Up to date on City and County taxes
Upon final approval by the EDA, and City Council when required, the EDA will prepare a
Promissory Note, Security Agreement, and Mortgage. All fees related to document preparation,
legal fees, and recording fees are the responsibility of the borrower.