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The Mounds View Vision <br />A Thriving Desirable Community <br />Item No: 6A <br />Meeting Date: April 10, 2023 <br />Type of Business EDA <br />City Administrator Review <br /> <br />City of Mounds View Staff Report <br /> <br /> <br /> <br />To: Economic Development Authority <br />From: Brian Beeman, Assistant City Administrator <br />Item Title/Subject: 23-EDA-364, Amending the New Business Forgivable Loan <br />Program <br /> <br />Introduction: <br />On September, 26, 2022 the City Council approved a resolution creating the New Business Loan Program for <br />startup businesses in Mounds View. The latest recipient was Filipino Village. Recently, the Sandwich Shop <br />submitted an application. They meet all of the criteria stated in the New Business Loan Program Policy except for <br />the criteria that they must be in business for five or less years. The business was registered with the State of <br />Minnesota on November 12, 2013. This pushes them over the five year threshold. <br /> <br />Staff has coordinated with Kennedy & Graven to prepare the necessary loan policy guidelines amendment and <br />resolution required if the Authority wishes to allow businesses over the five year mark to qualify for the loan. <br /> <br />Discussion: <br />The EDA to review and discuss the (five years or less) criteria and decide if approving the proposed Resolution is <br />appropriate. <br /> <br />The resolution approving the amendment to the program does two things: 1) Removes the requirement that a <br />business must be in business for five years of less. 2) Updates the name of the program from the Mounds View <br />New Business Improvement Forgivable Loan Program to the EDA Forgivable Loan. <br /> <br />Strategic Plan Strategy/Goal: <br /> Create and maintain a positive business climate where businesses want to locate and remain in Mounds <br />View through a good BR&E program and redevelopment efforts. <br /> <br />Financial Impact: <br />The current loan policy allows for a maximum of $5,000 annually up to three years per qualifying business. This <br />is an annually budgeted item. <br /> <br />Recommendation: <br />Consider approving 23-EDA-364, A Resolution Amending the New Business Forgivable Loan Program by <br />motion. <br /> <br />Respectfully, <br /> Brian Beeman, MPA, CMC <br />Assistant City Administrator <br />ATTACHMENT(S): <br />1) Resolution 23-EDA-364 <br />2) EDA Forgivable Loan Program Guidelines Update <br />