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<br />3.0 New Loan Policy Summary (amends existing guidelines and incorporates new State <br />requirements) <br /> <br />3. 1 The attached loan policy (revisions to existing guidelines underlined and state requirements italic) <br />includes the following: <br /> <br />a. Preamble: provides an introduction to the programs and why the City is establishing a <br />policy. <br /> <br />b. Purpose and Goals: provides the general understanding behind the use of the funds and <br />includes the economic development goals from the Comprehensive Plan. <br /> <br />c. Loan Policy Summary: details the specific structure and policies of each program. <br /> <br />1. The City currently has an existing Small Business Revolving Loan Program that <br />requires a matching bank loan with a maximum City loan amount of $25,000. The <br />program has been in existence since 1999 with the main purpose of improving the <br />aesthetics of any business by upgrading the building, landscaping, signage, parking <br />lot improvements, etc. The interest rate is set for all loans at 2% with a tenn not to <br />exceed 10 years. <br /> <br />11. The Minnesota Investment Fund loans are primarily for non-retail high technology <br />business growth where jobs are being added. The amount, interest rate and tenn of <br />the loans are negotiable and reviewed on a case by case basis. <br /> <br />d. Sections 3 - 8: includes statements regarding the statutory requirements for use of public <br />funds to include conflict of interest, reporting for business subsidies over $25,000, job <br />services listing requirements, public contracts, prevailing wages and data practice law. <br /> <br />4.0 Council Discussion <br /> <br />4.1 Staff will provide a summary of the loan policy and provide more detail regarding the Minnesota <br />Investment Fund application. A representative from IC Services will be at the meeting to answer <br />specific questions regarding their business and need for the loan. <br /> <br />4.2 Staff seeks Council discussion and direction regarding the draft loan policy and the Minnesota <br />Investment Fund loan to IC Services in anticipation of the November 27,2000 public hearing after <br />which Council will be asked to approve the City loan policy and the application under the Minnesota <br />Investment Fund. <br /> <br />By: Cathy Bennett, 490-2241 <br />Attachment: Draft Loan Policy <br />Q:\Economic Development\Business Retention Programs\Business Loan Policy Discussion 1l_2000.doc <br /> <br />RCD MN I nvestment Fund /Loan Policies- Page 2 of 2 <br />