Agenda - Economic Development Authority - 03/09/2017

Home

Economic Development Revolving Loan Guidelines 1. Purpose. The purpose of these guidelines is to establish policies and procedures to regulate, coordinate, and facilitate the workflow for underwriting new financing requests, servicing revolving loans, and ensuring borrower compliance with loan terms and conditions. 11. Authorization and Funding Sources. Chapter 469 of the Minnesota State Statutes, as amended, authorizes the City of Ramsey to make loans to prospective private businesses. The revolving loan fund was capitalized through funds made available by the City of Ramsey and the Minnesota Department of Employment and Economic Development. III. Mission. The mission of the revolving loan fund is to increase the City's tax base, create and retain permanent private sector jobs and improve economic opportunity and living standards for the citizens of Ramsey by promoting local business development and expansion, by attracting out-of-state business expansion, leveraging private sector funds, and assisting with the development of new technologies. IV. Program Objective. The objective of the revolving loan fund is to fill the financing gap between project costs and private debt financing and private equity by making direct low- interest rate loans for certain approved activities to businesses within the Ramsey city limits. V. Eligible Activities. A. Loan funds may be used to assist small businesses primarily by providing financial assistance for the following types of activities, including but not limited to: growth and expansion,rehabilitation, code compliance, employee recruitment and retention through housing initiatives, and facade enhancement.