HomeMy WebLinkAbout[04] Emergency Loans- I . -111 Amik
CITY OF ST. JOSEPH
MEETING DATE
AGENDA ITEM:
SUBMITTED BY:
EDA Agenda Item 4
May 19, 2020
Emergency Loans
Administrator/Community Development Director
PREVIOUS BOARD ACTION: At the last meeting, the EDA directed staff to draft loan terms and an
application for an emergency loan program related to COVID-19.
BACKGROUND INFORMATION: Staff has drafted loan terms and an application based on
Stearns County's emergency loan program.
BUDGET/FISCAL IMPACT:
ATTACHMENTS:
Draft Loan Terms
Draft Emergency Loan Application
REQUESTED BOARD ACTION: Provide input and direction
iW Draft
J "Mik City of St. Joseph EDA
TTY OF ST. JOSEPH[ Small Business Emergency Loan Terms
x Loan amounts will range from $ to $ and will be
based on the economic injury and the financial need of the business.
x Loan proceeds will be restricted to working capital only.
x Recipients will be charged a 1% loan origination fee, plus recording fees.
x Loans will have a % interest rate.
x Loans are to be paid back monthly over a period of two (2) years. The first
payment will be deferred for six (6) months.
x Loans will be provided to only St. Joseph, Minnesota-based businesses.
x Loans will require sufficient collateral or a personal guarantee to cover the
balance of the loan.
x If the business receives funding from MN DEED, SBA or Federal funding, the
loan must be repaid, in full, upon receipt of funds from the other source.
x In the case of default of the loan or the permanent closure or sale of the business,
the loan immediately becomes due and payable in full.
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SMALL BUSINESS EMERGENCY LOAN PROGRAM APPLICATION
Program Information: All loans made are for the purpose of working capital and intended to replace cash
flow used for operating costs that existed at the time of the peacetime emergency declaration made through
Executive Order 20-01. Such costs may include current payroll obligations (i.e. may not include employees
who have been laid off), lease or mortgage payments, inventory, and other working capital expenditures.
All loans bear % interest. Loans may not be used to refinance any debt existing at the time of the
peacetime emergency declaration. Loans will be immediately repayable upon receipt of other financing
made for a similar purpose, such as an SBA Economic Injury Disaster Loan.
Eligibility Notes: All applicants must be St. Joseph Minnesota businesses that have been operating
long enough to demonstrate financial viability. Applicants must demonstrate that they were directly and
adversely affected by the COVID-19 related peacetime emergency Executive Orders 20-04 and 20-08,
including being in an industry specifically named by those executive orders. Businesses that primarily
generate revenue from gambling activities and businesses that generate any part of income from adult-
oriented activities are not eligible to apply. All applicants are encouraged to apply for an SBA Economic
Injury Disaster Loan.
City of St. Joseph EDA may need to request additional information prior to making a final determination.
This application is intended to assist the St. Joseph EDA in determining eligibility.
Please complete the following information:
Applicant:
Legal Name of the Business:
Sole Proprietorship
Partnership
Corporation
LLC
Length of Time in
Years Months
Fed
MN State
Business
Tax Id#
Id#
Mailing Address
City
Zip
Location Address
City
Zip
Business Phone
Business Fax
E -Mail Address
Web Address
Contact Name
Title
Amount of
The number of employees
Funding
$
who have been impacted by the
Requested
Governor's Executive Orders?
How has the Governor's Executive Orders financially affected your business?
For what purpose will these funds be used?
Principal #1
Name
DOB
SS#
Address
City
ZIP
Percentage of Ownership
Principal #2
Name
DOB
SS#
Address
City
ZIP
Percentage of Ownership
Application Requirements
x The "Small Business Emergency Loan Program " application must be completed in its entirety
by the applicant and submitted to City of St. Joseph, 75 Callaway St. E. St. Joseph, MN 56374
in order to be considered.
x Financial statements for the past two (2) years.
x Personal credit report for each principal owner.
LOAN PROGRAM AUTHORIZATION FOR RELEASE OF INFORMATION
I declare that the information provided in this application and on the accompanying exhibits is true
and complete to the best of my knowledge. City of St. Joseph Economic Development Authority
has the right to verify any information contained in this application, including credit reports on the
individuals and the business, and may contact any individuals and institutions involved with the
proposed project.
Signature/Title of Applicant
Date