2007.08.20 EDA Packet - Laserfiche WebLink

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MINNESOTA Application Procedures Investment Fund Eligible Applicants Applications are accepted on a continuous IBM basis as long as funding is available. The The Minnesota Investment Fund (MIF) program Eligible applicants for state funded MIF assis- maximum amount available for each project is is designed to stimulate economic develop- tance are local units of government, including $500,000 and the MIF program can provide r ment activity by assisting towns, cities, counties and Indian tribes. Fed- no more than 50% of the project costs. To Minnesota's private sec- eral funds are available to HUD's non-entitle- determine the eligibility of a project, the local for to create or retain the ment local units of government. Applications unit of government should contact DEEDs' highest quality jobs possible cannot be submitted by a business. Senior Loan Officer early in discussions with with a focus on industrial, the business. The business will be asked to manufacturing and technol Eligible ACtIVItI@S provide a business plan, historical and pro- ogy related industries. The forma financial statements. If it is determined Loans to Businesses: Loans can be made for program assists businesses I that the project is viable the local unit of gov- by providing financing at land or building acquisition, construction, and ernment will be invited to submit a complete reasonable terms and inter- equipment. The local unit of government must application. est rates and by providing perform its own due diligence on the business public improvements that to be assisted. The business must provide the Creating a Revolving " support these business same documentation that is requested by a projects. The program funds are used when a bank prior to making a financing decision. The Loan Fund funding gap exists and alternative sources of interest rate and collateral is negotiated and When state funds public and private financing are not adequate. the loan term is set based on the uses of funds. ; are provided to a Personal guarantees may be required. local unit of govern- infrastructure Projects: Federal funds, pro- ment, the grantee Funding Sources vided in the form of a grant, can be used to may retain 20% of Funding is available for the program through build publicly owned infrastructure such as wa- the repayments. the Department of Housing and Urban De- ter, sewer, and streets that support a business The remainder is re- velopment (HUD) Small Cities Development start up or expansion. Applications for public turned to the DEED Program (federal funds), a one-time state improvements are reviewed using the same to supplement the appropriation, and the MIF Revolving Loan procedures as for loans to businesses. J MIF Revolving Loan Fund (state funds), which are repayments from Fund account. When state funded projects. a project is awarded s with federal funds Jobs and Wages Na. g �r the grantee retains Each business project must create jobs that ;Awpw ! all of the repayment. pay, at a minimum, in outstate Minnesota, $10 i The revolving loan ., per hour in wages, exclusive of benefits and at Ineligible Activities fund policy for the least $10.92 per hour including benefits. In the 1. General community promotion reuse of the funds seven county metropolitan area, the business ,r 2. Assistance to professional sports must be approved must pay a minimum wage of $13 per hour, by the Departments' teams, retail businesses and casinos Senior Loan Officer. exclusive of benefits. The use of federal funds '""* follows the same criteria, however 51% of the 3. Industrial park development Determinations as jobs must benefit low and moderate income 4. Working capital to the source of people. 5. Refinancing of existing debt funding to be used are made by the Senior Loan Officer.