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• The SBA 504 Loan program provides fixed-rate, long-term financing for land, <br /> buildings and manufacturing equipment or machinery. SBA 504 Loans feature a <br /> 10 to 20 amortization, fixed-loan payments, below market interest rates, and a <br /> low downpayment. The deal structure is 50% bank loan (1st position), 40% SBA <br /> 504 (2nd position), and 10% equity injection. (A new business and a special- <br /> purposed building require 20% equity injection.) The program's minimum and <br /> maximum loan amounts are $50,000 and $750,000 respectively. <br /> How does the program work? <br /> Businesses should contact the certified development company authorized by <br /> SBA to originate and service SBA 504 loans in their geographic area. SPEDCO <br /> is a non-profit certified development company located in New Brighton whose <br /> mission is to help small businesses obtain financing for job creation, to fund <br /> business expansion and to promote economic development in Minnesota. <br /> SPEDCO can handle SBA Loan financing for businesses wishing to expand or <br /> locate in Mounds View. They provide long-term, fixed rate loans through the <br /> SBA 504 Loan program and also provide 7(a) loan packaging consulting services <br /> to banks and their customers. For more information call 651-631-4900. <br /> 2) State of Minnesota Business Financing Programs <br /> The Department of Employment and Economic Development encourages the <br /> • creation of high quality jobs through business growth, expansion and retention. <br /> Business Development Services help companies expand or relocate in <br /> Minnesota, find and train employees, promote international trade, and finance <br /> business expansions. The most likely funding program applicable to Mounds <br /> View businesses would be the Minnesota Investment Fund (MIF). It's designed <br /> for businesses acquiring "fixed assets" (such as equipment, buildings, and land) <br /> and adding new employees as a result. This program provides companies <br /> below-market financing. Virtually all types of businesses are eligible, except <br /> retail. The maximum award is $500,000. The applicant is the city. Terms are <br /> negotiated. <br /> 3) Ramsey County Business Loan Program <br /> The Ramsey County Business Loan Program provides gap financing that can be <br /> used in conjunction with other private and public funds. <br /> Who can apply? <br /> In general, loans are restricted to commercial, industrial, or service oriented <br /> businesses located in or moving to Ramsey County. In addition, businesses <br /> must be registered to do business in the State of Minnesota and demonstrate a <br /> need for public financing. <br /> How does the program work? <br /> • Loans are typically made for the purchase of capital equipment, land and building <br /> acquisition, and building rehabilitation or new construction. Application fees are <br /> March 10,2008 <br /> Mounds View Business Toolbox <br /> Internal Document <br /> Page 7 of 10 <br />