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EDA Item 7B – May 26, 2009 <br />Discuss Business Improvement Partnership Loan Program <br /> <br />Page 2 of 3 <br />Who can apply? <br />Any business owner who has operated a facility or property located in <br />Mounds View for a minimum of two years. <br /> <br />How does the program work? <br />The City’s Economic Development Authority, in partnership with local <br />banks, will provide improvement loans to existing Mounds View <br />businesses at a minimum of $10,000 and a maximum of $50,000. <br />The City participates by providing only half of the loan amount at a 2% <br />interest rate. <br /> <br />Discussion <br /> <br />On May 11, 2009, the EDA indicated interest in reviewing the Business Improvement <br />Partnership Loan Program criteria at a future meeting. The criteria is attached in the form <br />of a flyer (the flyer is the program criteria). I also have attached the current application. <br />This review was prompted by a recent inquiry from a dentist who would have applied for <br />the program if the EDA would have considered waiving the loan criteria that only <br />businesses located in Mounds View for at least two years are eligible. <br /> <br />Also on May 11, 2009, the EDA discussed whether City staff is promoting the program <br />enough. City staff has not promoted the program since March 2008 because the EDA <br />approved the Toolbox as an “internal document only” and directed staff to discuss <br />available programs with businesses only if businesses inquire about such programs. The <br />EDA also directed staff not to post the Toolbox on the City’s Website. <br /> <br />It is staff’s opinion that if the City is going to have Economic Development programs, that <br />they should be promoted and used to the extent possible given budgetary considerations. <br /> <br />Recommendation <br /> <br />Staff recommends that the EDA authorize the promotion of all available business <br />assistance programs to existing and prospective Mounds View businesses. This <br />promotion could occur on the City’s Website and in other marketing materials. If promoting <br />the Business Improvement Partnership Loan Program does not attract more applicants <br />within one year of today’s date, staff would then recommend that the EDA change the <br />program so that it better fits the needs of businesses and the City. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />____________________________ <br />Heidi Steinmetz <br />Economic Development Specialist <br /> <br /> <br />