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to <br />The CDC uses the proceeds from the sale of these ically, ascommercialhbankgwill , <br />term financing to eligible small businesses. TYP <br />finance 5o percent of the project d loan andstheobusiness4will rfurnish lthe <br />e <br />financed with an SBA 503 guarantee <br />remaining 10 percent. <br />The expansionrincluding landsacquisitioned to Ceexisting buildings lant ^and leasehold conversion r <br />improvements by a small business for its own use. Plant construction may <br />include working cano <br />pital. The fbusiness rreceiving�then503 loan t. The pmustabeca^for profitd for <br />corporation, partnership or proprietorship. <br />40 t of the <br />The maximum SBA 503 loan ical5prnoec, which cannot exceed <br />503 rangepfromna minimum of <br />total project costs. Typical plus total project cost). The 503 program <br />$100,000 to a maximum of E1,250,000 p ( <br />can be used in larger projects, but leveragecget smalier.laiteis possibleeto o° <br />503 participation and its resulting <br />combine 503 with other federal programs, such as Urban Development Action <br />, provided the total federally sponsored contribution does not exceed 40 <br />Grants <br />percent of the total project costs. <br />The Council proposes to establish a 503 certified development nonprofit <br />useponaaivoluntarfor ty basisn_cSBAtrequiresothat aACDC be established municipaliaseancould <br />the CDC <br />independent company incorporated in the state of Minnesota. Therefore, • <br />would be a separate entity from the Metropolitan Council. <br />The alities and <br />sses <br />thoseecities to take advantaget CDC lofathewprogram without havingstoeestablishia <br />local development corporation. Essentially, then, this regional corporation <br />This <br />would would beeparticularlyeadvantetroageous^forucitiesnwithhlimitedtstaffion uorowith <br />limited potential for commercial and industrial development projects. <br />If the Council were to establish this regional development corporation, cities <br />staff would would first request <br />to participateintin <br />nstthe <br />husinessesrogram.Aandhtheiribankersptoation <br />package a project. <br />REGIONAL 503 PROGRAM GUIDELINES <br />the implementation of the 503 program. <br />The following guidelines will govern <br />Local Community Consent Y roved such operation <br />The <br />a503 CDC resolution of operate <br />the only erning that have approved <br />by <br />Consistency with Laws and Ordinances <br />Eligible projects will be consistent with state and federal laws and the <br />nd resolutions of the municipality in which the project is <br />charter, ordinances a • <br />located. <br />20 <br />