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#2 <br />¨³¸ ®¥  ¬²¤¸ <br />%¢®­®¬¨¢ $¤µ¤«®¯¬¤­³ <br />0±®©¤¢³ &¨­ ­¢¨­¦ 4®®«² <br /> <br /> <br /> <br /> <br /> <br />OVERVIEW <br /> <br />The City of Ramsey has a number of financial tools available for economic development projects. In <br />general, tools include gap financing loans, SBA loans/loan guarantees and project based local tax <br />incentives. Below is an overview of each available tool. <br /> <br /> GAP FINANCING: <br />1.Ramsey Revolving Loan Fund (RLF) <br /> <br />2.Minnesota Investment Fund (MIF) <br /> <br /> <br /> <br />project. A financial gap occurs when private financing and/or owner equity cannot fund an <br />entire project. Commonly, these programs are used to purchase equipment; however, <br />other eligible uses exist. Interest rates and terms are negotiable. In some cases, loans can <br />be forgivable (i.e. a grant). <br /> <br />SBA FINANCING: <br />3.Small Business Administration (SBA) Loans <br /> <br />4.Small Business Administration (SBA) Loan Guarantees <br /> <br /> <br />SBA 504 Loans provide long-term, below-market, subordinated financing for up to 40% of <br />project costs. SBA Loan Guarantees provide a private lender with a repayment guarantee <br />up to 85% on its loan for an eligible project. <br /> <br />PROPERTY TAX PROGRAMS: <br />5.Tax Abatement <br /> <br />6.Tax Increment Financing (TIF) <br /> <br /> <br />Tax abatement and TIF are local tax programs typically used for development or land <br />acquisition costs. In general, both programs work by capturing property taxes generated by <br />a particular parcel then dedicating said tax revenue for a specific project cost. <br /> <br />Eligibility for financing tools is based on the merit of an individual project, compliance with specific <br />program requirements and in many cases approval from the Ramsey EDA and City Council. The City of <br />Ramsey targets quality projects with high quality job growth. Typically, projects require owner equity <br />and/or private financing (e.g. SBA loan). Most programs require specific job creation goals and annual <br />reporting. The following pages provide detailed information on each program. <br /> <br /> HOW DO I KNOW WHAT TOOLS I AM ELIGIBLE FOR? <br />Identifying finical tools your business may be eligible for is a clearer and cleaner process if <br />project specs can be provided to the City (i.e. project budget, job details, building specs, etc.). <br /> <br /> <br /> <br />