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<br />4.0 Policy Implications <br /> <br />4.1 To participate in the Minnesota Investment Program the City is required to develop a <br />loan policy regarding the use of the proceeds and interest generated from the Minnesota <br />Investment Fund. Based on the State requirements, the funds from the two loan <br />programs must remain separate and cannot be mixed in one loan. Roseville's policy has <br />allowed for only one loan per business. <br /> <br />4.2 In addition to the Minnesota Investment Fund dollars, the City also hasa small business loan <br />fund that allocated $100,000 in 1999 and $100,000 in 2000 from the Economic Development <br />Project Fund. The City established guidelines for use of the funds that were adopted by the <br />Council on January 25, 1999. There are currently seven small business loans outstanding for <br />a total amountof$151,055. <br /> <br />4.3 The attached draft Business Loan Policy includes the provisions found in the guidelines that <br />were previously approved by the City Council for the Roseville Small Business Loan Fund <br />The Policy also incorporates the new provisions required by the State for use of the <br />Minnesota Investment Fund proceeds and interest. <br /> <br />5.0 Fiscal Impacts <br /> <br />5.1 By participating in the Minnesota Investment Fund Program the City keeps the first <br />$100,000 in loan payments. These funds will be deposited in a revolving loan fund <br />for future business loans. Companies making application for these loans must meet <br />the criteria outlined in the Roseville Business Loan Policy (specifically, the <br />subsection on Minnesota Investment Fund loans). <br /> <br />5.2 The City will incur minimal attorney fees in the evaluation of this application and <br />preparation of the loan documents. These costs can be recaptured by the interest collected <br />from the loan payments. <br /> <br />5.3 Future administration fees will be covered by a I percent charge on loans issued under the <br />program as outlined in the draft policy. <br /> <br />5.4 Loan monitoring and state reporting will with existing staff resources. <br /> <br />5.5 The loan will enable an existing business to remain and expand with new jobs in Roseville. <br /> <br />6.0 Staff Recommendation <br /> <br />6.1 Staff recommends approval of the resolution (draft attached) authorizing the Mayor <br />and City Manager to enter into ~greements for participation in the Minnesota <br />Investment Fund on behalf of the City ofRoseville. By providing a low interest loan <br />to IC Services using State Funds, the City is not only assisting in the expansion of a <br /> <br />RCA MN Investment Fund Hearing (PF3275 11/27/00)- Page 3 of 4 <br />