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Based upon this survey the City may want to originally provide $250,000 dollars in capital' for the <br />program. This would not mean that the City would loan this entire amount but that it would <br />provide enough income from interest to continue the program in the furore. <br /> <br />Staff also requested information as to the maximum loan amount for any given project to allow for <br />the City to set',limits to the loans that it would issue. The following list is the results of this survey: <br /> <br />City <br /> <br />Maximum Loan <br /> <br />Elk River $250,000 <br />Blaine 10% of Project <br />Coon Rapids $15,000 <br />Anoka $25,000 <br />Coltmibia Heights $25,000 <br /> <br />The City of Elk River recently received a grant for a loan to a local company that was in the amount <br />of $250,000. Generally their loan amount would be less. <br /> <br />The City should consider a loan maximum of 10% of the project with the bank providing 80% and <br />the business groviding 10% of the total cost of the project. By using a percentage instead of a set <br />dollar amount!the City would be able to facilitate a wider range of projects. <br /> <br />Recommendations: <br /> <br />City Staff recommends that the Economic Development Authority provide the revolving loan fund <br />with $250,000 for loan purposes. <br /> <br />City Staff recommends that the Economic Development Authority provide that the revolving loan <br />fund limit the amotmt of any loan to 10% of the total cost of the proposed project. <br /> <br />EDA Action: <br /> <br />Resolution to direct City Staff to transfer $ <br />the Revolving~Loan documents as amended. <br /> <br />to the Revolving Loan Fund and to complete <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Finance Officer <br />Project Manager <br /> <br />EDA: <br /> <br /> <br />