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Case # 1 <br /> <br /> Consider Revolving Loan Fund for Martin EDM <br />By: Scan Sullivan, Economic Development Coordinator <br /> <br />Background: <br /> <br />Martin EDM has approached the City for assistance with its precision machining company. This business is <br />currently located on the old Bakestar site on Azurite Street. Martin EDM will need $395,400 to purchase some <br />machinery for his business. There is a $25,000 gap in the financing and Martin EDM is requesting a loan from <br />the City of Ramsey's revolving loan fund. The financial analysis of this deal is being done by CMDC as they <br />are a part of this financing package. Staff recommendation is to authorize a loan to Martin EDM in the amount <br />of $25,000 at a rate equal to the SBA rate. This market rate loan would not be considered a business subsidy <br />and therefore there are no required hearings. <br /> <br />Recommendation: <br /> <br />Staff recommends approval for a $25,000 a loan from the Revolving Loan Fund to Martin EDM contingent on <br />review of the loan application and financial information. <br /> <br />EDA Action: <br /> <br />Motion to recommend approval for $25,000 a loan from the Revolving Loan Fund to Martin EDM contingent <br />on review of the loan application and financial information. <br /> <br />~EDA: 1}5.11.06 <br /> <br />10 <br /> <br /> <br />