Laserfiche WebLink
<br />29 <br />4859-6924-4449\6 <br />GLOSSARY <br />Cash Flow: An important consideration is whether a business can repay a loan out of its operating <br />cash flow. <br />Collateral: A tangible asset like land, building, inventory, machinery and equipment, etc., offered <br />as security on a loan. Typically, the value of the offering is greater than the amount loaned. <br />Commercial Club: Usually an incorporated 501(c)(4) or (6) organization whose purpose is to <br />promote community and retail events. The membership is usually made up of retail business <br />owners or owners of businesses in the central or downtown business district. <br />Chamber of Commerce: A chamber is an incorporated, non-profit 501(c)(4) or (6) that is generally <br />affiliated with the state and national chamber of commerce. The chamber consists of local business <br />professionals of the community who meet together to promote local businesses and the <br />community. Generally, they have an elected board with and most have limited staff. Larger <br />chambers often deal with tourism and overall business development of the community. They <br />sometimes are politically active and can be a powerful lobbying force when dealing with policy <br />that affects the community’s economic strategy. Chambers are generally active and can hold <br />educational and other events for local businesses. <br />Development Commission: A board used to advise City Council, appointed by the Mayor and/or <br />City Council. It has limited or no decision making authority and is used as a sounding board or a <br />first point of contact for the City Council for development projects. The commission w ill draft <br />strategies and policies for ratification and implementation of local plans on a volunteer basis. <br />Economic Development District: A type of tax increment financing district which consists of any <br />project, or portions of a project, but which the authority finds to be in the public interest because: <br />it will discourage commerce, industry, or manufacturing from moving their operations to another <br />state or municipality; or it will result in increased employment in the state; or it will result in <br />preservation and enhancement of the tax base of the state. <br />Excess Increments: Tax increments that exceed the amount needed to pay the costs authorized <br />under the tax increment financing plan. Increments are not excess increments if the TIF plan has <br />been amended or modified to permit additional spending. The law requires that excess increments <br />be used to prepay outstanding bonds or deposited in an escrow account for bond payments or <br />returned to the City, County, and school district(s) in proportion to their local tax rates. <br />For-Profit Development Corporation: A corporation formed to develop and sell industrial land <br />and/or provide financing for business development within the community. Local investors can <br />buy shares that can be paid dividends for profits made on projects. Money invested in corporations <br />can be repaid to the stockholders. The board is made up of shareholders and may or may not have <br />staff. The corporation is subject to federal and state income tax. <br />Guarantee Fee: Money paid by a borrower to a government agency, company, or individual to <br />guarantee repayment of a loan. The fee is usually a percentage of the amount of the guarantee.