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eventual bank loan. They offer micro loans up to $25K for start-up and early stage businesses and they offer gap financing. She stated that technical assistance is the main thrust of the program but they also offer financing. City Administrator Ulrich asked about the origins of the funds and how they are replenished. Ms. DuChene replied that the program works with a community of banks. The money is loaned to the program at a low interest rate and the program will in turn loan the money out at a little bit higher interest rate. They are now 70 to 80% self - funded. They also get monies from the federal government and foundations. Vice Chairperson Skaff asked if the program is looking to the City of Ramsey for a contribution and if Ms. DuChene would be available at the City of Ramsey for 2 '/2 hours a month. Ms. DuChene replied that she would be available at the City and that the program is not asking for dollars. The program is a free service to residents and small business and is funded by the City or county. She is asking the cities to promote it as much as possible. Vice Chairperson Skaff asked about the loan interest rates. Ms. DuChene replied that they don't go over 10 %. They are slightly higher than traditional banks because there is more risk. The program uses the same process that a bank would and has to look at collateral and how much money will be invested. The program goes through a very intensive process of evaluating the business and risks. There is a loan committee that looks at the loans and approves them. Member Hardin asked about the counselors' background. Ms. DuChene replied that the backgrounds are similar to hers. She stated that there are four or five other business advisors. Their backgrounds include working for banks, owning their own businesses, and one is a professor at a community college. She also stated that the program had 40 clients that have been seen in the first quarter and over a 100 hours in direct contact with those clients. Specific records are kept and are reported to the counties or the cities. Member Riley stated that he is thinking about three or four of his clients that could use the program's services and that this sounds like it would be a great resource. Ms. DuChene stated that the program looks at itself as an extension of economic development and also to relieve City staff. She also stated that the key is to advertise the program and talked about getting information on the City's website, newsletter, and notices in utility bills. Member Skaff suggested advertising at the Business Expo being held April 18 Economic Development Manager /Assistant City Administrator Brama stated that the City would hand out the program's brochures at events. Economic Development Authority /April 2, 2015 Page 3 of 9