The purpose of these documents is to provide guidelines for the award and processing of loans under the City of St. Charles Economic Development Authority (EDA) Revolving Loan Fund (RLF) Program.
It is intended to be used as the procedure for the EDA to follow in the administration of the RLF.
GENERAL LOAN POLICIES ELIGIBLE BORROWERS: Any legitimate business whose primary Place of business is in the City of St. Charles.
Loans will be targeted to general service and retail businesses and manufacturing businesses.
ELIGIBLE USE OF PROCEEDS: Proceeds may be used for building construction, rehabilitation, working capital, machinery, equipment, and real estate.
INELIGIBLE USE OF PROCEEDS: Refinance debt Pay delinquent taxes Cover product development costs Pay organizational costs of start-ups Invest into residential real estate LOAN AMOUNTS: The St. Charles EDA will make loans with the following size parameters: Minimum EDA Loan – $ 1,000 Maximum EDA Loan – $ 25,000 * * Note – EDA Loans may not exceed 50% of the available EDA fund balance.
JOB CREATION AND/OR RETENTION: Per State of MN Guidelines, the business must provide for the retention or creation of new jobs.
An annual report must be submitted showing that 51% of the jobs retained or created are made available to low to moderate-income employees.
TERMS OF LOANS: Terms will be as follows: – Inventory 3 years – Equipment 5 years – Heavy Equipment 7 years – Real Estate 15 years INTEREST: The interest rate shall be determined by the St. Charles Area EDA at the time of loan approval.
City of St. Charles, Minnesota
Address: 830 Whitewater Avenue
City: St. Charles