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PR~)GRAM PROFILE SMALL BUSINESS DEVELOPMENT LOAN PROGRAM Program purpose: To create jobs and provide loans for business expansions. How it works: Tile Minnesota Agricultural and Eco- nomic Development Bo~d (MAEDB) makes small business loans through the issuance of industrial development bonds backed by a state-funded reserve of 25 percent. Terms: Real estate at maximum of 20 years; equip- ment at 10 years or 80 percent of useful life; not to exceed weighted average useful life of assets financed. Collateral requirements: First mortgage on real property or equipment financed by MAEDB and personal guarantees of owners. In some cases, additional security in the form of other liens or guarantees may be required by MAEDB or bond underwriters. Fees and other costs: No MAEDB fee, but board Eligible applicant: Manufacturing and industrial issuance costs of 5 percent are capitalized with the loan businesses located or intending to locate in Minnesota, as principal. One year's debt service must be escrowed. defined by S mall BusineSs Administration size and eligibility standards; generally, those with 500 employees or fewer. Applicationsaccepted: On ayear-roundbasisthrough the Community Development Division's single application Minimum requir, ements: New capital investment process. Applications must be received by the first of each resulting in a significant number of new jobs and other month to be considered during that month. beneficial economic impacts. Eligible projects: Acquisition of land,building, equip- ment; building construction and renovations; development costs such as engineering, legal and financial fees. Working capital and refinancing ~'e not eligible uses of funds. Maximum available: $500,000 minimum, up to a maximum of $4 mi/lion. Other funds reqaired: Generally, 20 percent of the project costs must be privately financed through equity or other private sources; 2~ percent is required on equipment transactions. Where theg is sufficient non-cash equity avail- able in the project, MAEDB may consider a loan-to-value ratio greater than 80 perCent. In terest rate: Market rate of interest for similar secu- rities at the time bonds are sold. Rates are fixed for the term of the loan. Contact: DTED/Community Development Division at (612) 296-5005. · . Local Contacts for Economic ·· Development Information · · Mayor Glen Hardin 784-3533 · · · Economic Development Commission · Chair Ken Wagner 780-1797 · · Vice-Chair David Kent 753-5131 · · City'Administrator · Ryan Schroeder 427-1410 · · · Economic Development Cordinator · · James Gromberg 427-1410 · City of Ramsey Ramsey Municipal Center 15153 Nowthen Blvd. N.W. Ramsey, MN 55303 Bulk Rate U.S. Postage Paid Permit No. 131 Anoka, MN 55303