Muyni
← Back to Maple Grove

Economic Development Authority

Regular Meeting

Maple Grove, MN · September 21, 2020

AgendaMinutes

Minutes

Maple Grove Economic Development Authority Meeting Minutes September 21, 2020 Call to Order Pursuant to call and notice thereof, an Economic Development Authority Meeting of the Maple Grove City Council was held at 7: 30 p. m. on May 1, 2020 at the Maple Grove Government Center/ Public Safety Facility, Hennepin County, Minnesota. Members present were Acting President Karen Jaeger, Secretary Heidi Nelson, Treasurer Judy Hanson, and Commissioners Phil Leith and Kristy Barnett. Absent was President Mark Steffenson. Present also were Joe Hogeboom, Community and Economic Development Director; Peter Vickerman, Planning Manager; Ken Ashfeld, Director of Public Works/ City Engineer; Brett Angell, Economic Development Manager; and Justin Templin, City Attorney. Acting President Jaeger called the meeting to order at 9: 05 p.m. Consent Items A. Meeting Minutes — September 8, 2020 B. CARES Act Funds Motion to approve dispersal of CARES Act funds to Cross for food and financial assistance programs that serve Maple Grove residents. Motion by Commissioner Barnett, seconded by Treasurer Hanson, to approve the September 8, 2020 Economic Development Authority meeting minutes. Upon call of the motion by Acting President Jaeger, there were four ayes and no nays. Motion carried. COVID- 19 Economic Development Manager Angell requested the Commission approve a resolution amending the COVID Recovery Loan Fund Recovery Loan Fund policy and to allocate an additional COVID RLF) $ 500, 000 to this program. He explained between April and July the EDA created the COVID- 19 Recovery Loan Fund and the Amendments Emergency Loan Fund. He discussed the purpose of each of and Funding these programs with the EDA. He explained $ 500, 000 in CARES Act funding has been designated to both of these Maple Grove EDA Minutes September 21, 2020 Page 2 EDA programs and 37 businesses have received their funding. He stated at a previous worksession meeting, adjustments were Resolution No. discussed for this program which would allow a greater number 22 of businesses to for the funding. The apply proposed amendments were discussed in further detail. He commented on the items that were eligible for reimbursement through these programs. Acting President Jaeger questioned if businesses were eligible to apply for the new $ 2500 grant if they received funding in the first or second round of loans. Economic Development Manager Angell reported previously funded businesses would be able to apply if they had eligible expenses. Motion by Commissioner Leith, seconded by Commissioner Barnett, to approve adopting EDA Resolution No. 22 authorizing amendments to and additional funding for the COVID- 19 Recovery Loan Fund. Upon call of the motion by Vice President Jaeger, there were four ayes and no nays. Motion carried. Adjournment Motion by Commissioner Barnett, seconded by Treasurer Hanson, to adjourn to the City Council meeting. Upon call of the motion by Acting President Jaeger, there were four ayes and no nays. Motion carried. The meeting was adjourned at 9: 15 p.m. by Acting President Jaeger. Respectfully submitted, Heidi Nelson EDA Secretary

Agenda

AGENDA ECONOMIC DEVELOPMENT AUTHORITY SEPTEMBER 21, 2020 1. CALL TO ORDER 2. CONSENT ITEMS A. Meeting Minutes— September 8, 2020 B. CARES Act Funds Motion to approve dispersal CARES Act funds to Cross for the food and financial assistance programs that serves Maple Grove residents. Motion by seconded by to approve, table or deny the Consent Items as presented. 3. COVID- 19 Recovery Loan Fund A. COVID- 19 Recovery Loan Fund ( COVID RLF) Amendments and Funding— EDA Resolution No. 22 Motion by seconded by to approve, table or deny approving EDA Resolution No. 22 authorizing amendments to and additional funding for the COVID- 19 Recovery Loan Fund. 4. ADJOURNMENT Motion by seconded by to adjourn. Meeting adjourned at EDA 2A AGENDA ITEM Maple Grove Economic Development Authority DRAFT Meeting Minutes September 8, 2020 DRAFT Delete this when final edits are complete) Call to Order Pursuant to call and notice thereof, an Economic Development Authority Meeting of the Maple Grove City Council was held at 7: 30 p. m. on September 8, 2020 at the Maple Grove Government Center/ Public Safety Facility, Hennepin County, Minnesota and online via WebEx. Members present were President Mark Steffenson, Vice President Karen Jaeger, Secretary Heidi Nelson, Treasurer Judy Hanson, and Commissioners Phil Leith and Kristy Barnett. Absent was none. Present also were Joe Hogeboom, Community and Economic Development Director; Peter Vickerman, Planning Manager; Ken Ashfeld, Director of Public Works/City Engineer; and Justin Templin, City Attorney. President Steffenson called the meeting to order at 8: 45 p. m. Approval of Motion by Commissioner Leith, seconded by Treasurer Hanson, to approve the August 3, 2020 Economic August 3, 2020 Minutes Development Authority meeting minutes. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. Adopt Secretary Heidi Nelson reviewed the proposed EDA/HRA Tax Proposed Levy for 2021. She noted the same tax levy in the amount of 150, 000 has been approved since 1999. She explained these EDA/ HRA funds were used for administrative costs and various funding Tax Levy commitments for city housing programs. Staff commented further on the proposed tax levy and recommended approval. Vice President Jaeger questioned if the EDA should consider an increase in the proposed tax levy. Secretary Nelson reported the city has not created new programs to date that require additional DRAFT Maple Grove EDA Minutes September 8, 2020 Page 2 funding through the EDA; however, the city could consider new programs in the future. She explained the city receives additional funding from the county and CDBG to assist with covering the costs for its EDA/ HRA programs. Motion by Treasurer Hanson, seconded by Commissioner Barnett, to approve adopting EDA Resolution No. 21 setting a proposed tax levy for 2021. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. Adjournment Motion by Vice President Jaeger, seconded by Treasurer Hanson, to adjourn to the City Council meeting. Upon call of the motion by President Steffenson, there were five ayes and no nays. Motion carried. The meeting was adjourned at 8: 50 p. m. by President Steffenson. Respectfully submitted, Heidi Nelson EDA Secretary REQUEST FOR EDA ACTION September 21, 2020 EDA 2B DATE AGENDA ITEM ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL Community and Economic CARES Act Funds Development PREVIOUS ACTIONS: None RECOMMENDED COUNCIL ACTION: Motion to approve dispersal CARES Act funds to Cross for the food and financial assistance programs that serves Maple Grove residents. Simple majority vote for passage) COMMENTS: The City Council established a Housing Trust Fund, in which CARES funds have been placed for the benefit of providing rental housing assistance for low- income individuals. CROSS has been designated as the responsible party for administering the programming. With this motion, the EDA will authorize allocating the funds to CROSS. ATTACHMENTS: Attachment A: CROSS CARES Request Letter Attachment A September 2, 2020 AON i, 1ping 11„ 1d,. Heidi Nelson, City Administrator Joe Hogeboom, Director of Community and Economic Development City of Maple Grove 12800 Arbor Lakes Pkwy N Maple Grove, MN 55369 Dear Heidi and Joe: Thank you for the invitation to request CARES Funding from the City of Maple Grove for our food and financial assistance programs. We are grateful for the opportunity to serve even more Maple Grove residents in the coming months. About CROSS Since 1977, CROSS has been working with families experiencing financial crisis or ongoing poverty. We currently assist approximately 3, 282 Maple Grove families each year across all of our programs approximately 6, 500 Maple Grove residents). CROSS provides healthy food choices and opportunities for stable housing, along with clothing and household supplies, school supplies, birthday and holiday gifts and supplies, and scholarships for kids to participate in extracurricular activities. Request& Funding Purpose 185, 000 Food Programs 315, 000 Peace of Mind Financial Assistance Program CROSS 2020- 2021 Budget 1, 066, 034 Cash Budget 3, 226, 363 In- Kind/ Product Budget( Donated Food, Clothing, Toys, etc.) 4, 292, 397 Total Fiscal Year Budget Request Details The following pages describe in detail our food and financial assistance program, along with specific projections for how CARES funding from the City of Maple Grove will allow us to reach more Maple Grove families who are struggling. Please feel free to contact me with any further questions. If at all possible, we would like the opportunity to give you a tour of our facility. Thanks again for taking the time to consider our funding request. Sincerely, Elizabet Brown CEO/ Executive Director 12915 Weinand Circle I Rogers I MN 55374 1 P: 763. 425. 1050 1 F: 763 428 9937 1 www. CROSSsei vices org CROSS FOOD PROGRAMS What We Do CROSS is committed to providing healthy food choices for families coming to us from food insecure households. We partner with multiple organizations to ensure a supply of quality protein, produce, dairy, breads, culturally specific foods, and nutritious snacks for kids. Collectively, CROSS food programs resulted in 936, 164 meals to more than 6, 500 Maple Grove residents last year. CROSS distributes food to families through the following individual programs: 1) Rogers Food Warehouse: This location serves approximately 380 Maple Grove households each month. The warehouse is set up like a grocery store in which families can choose the food that fits their households' needs, along with hygiene items and cleaning products. 2) Mobile Food Pantries: Shelf stable and fresh foods are distributed at three Maple Grove sites. 3) Kidpack Program: Each month, CROSS provides approximately 1, 680 Maple Grove students living in food insecure households with nutritious food to eat over the weekend when they are not receiving school lunches, as well as providing snack bars for teachers and nurses to have on hand for hungry students during the school day, and hygiene packs for older students. 4) Senior Food Programs a) NAPS- Nutrition Assistance Program for Seniors, a monthly supplemental food program, serves 7 Maple Grove seniors. b) Meals on Wheels delivered approximately 3, 800 meals to Maple Grove seniors last year. The Impact of COVID- 19 The unemployment rate in the Twin Cities metro area has jumped 6- 7% since March of 2020. As Pew Research shows that unemployment disproportionally affects people of color and low- income workers, we expect to see an even higher percentage increase in food insecure homes in our area. We have already extended our mobile food pantry sites in order to accommodate some of the increase in need. The cost of serving a single individual in our food programs is$ 57. 54. This breaks out to roughly$ 50 in food, hygiene, and cleaning product expense ( 87%) and $ 7. 54 in staffing and other expenses ( 13%) This means that CROSS invested approximately$ 386, 668 in providing nutritious foods and other necessary items to Maple Grove residents last year. We expect the need to rise as the pandemic continues and families face long- term unemployment or job loss. A CARES grant from the City of Maple Grove in the amount of$ 185, 000 would allow us to provide an additional 3, 200 visits by Maple Grove residents during this time when families continue to struggle in our challenging economy. PEACE OF MIND FINANCIAL ASSISTANCE PROGRAM What we do The CROSS Peace of Mind Financial Assistance program assists families at risk of losing their home by providing rent or mortgage assistance as well as other financial support( utilities, car repairs, etc.) allowing them to stabilize their current situation and develop a long range financial plan. Peace of Mind intervention allows the family to regroup and keep the crisis from becoming a downhill slide into homelessness and financial devastation. Last year, CROSS provided more than$ 99, 000 in financial assistance for homelessness prevention to approximately 57 Maple Grove families ( 210 individuals). Families in danger of losing their housing complete an application form and provide the following documentation to CROSS Family Advocate ( s): Driver' s license or MN State ID Most recent utility bills Proof of income Most current lease or mortgage statement Contact information for your Landlord/ Mortgage Company/ Utility Company Any other documents that verify the reason for needing assistance A copy of the full application packet is attached to this request. Family advocates spend significant time working closely with families to assess finances, advocate with creditors, and provide other support through the application process. When funds are awarded, they are paid directly to the landlord, bank, or other creditor concerned. The Impact of COVID- 19 Again, the unemployment rate in the Twin Cities metro area has jumped 6- 7% since March of 2020. As unemployment disproportionally affects people of color and low- income workers, we expect to see an even higher percentage increase in families seeking assistance from CROSS. At the present time we are already seeing a significant increase in requests for assistance due to COVID- 19, but we expect the demand for funding to rise even more in the coming months for several reasons. First, as Governor Walz' s executive order continues to suspend evictions and foreclosures in most circumstances in which a family is unable to pay their rent due to COVID- 19- related causes, CROSS expects these families to come to us at the tail end of the pandemic, rather than in the immediate future. Second, as families are only temporarily protected by the stay of eviction order and will be expected to pay all back rent at such time as the order expires CROSS expects the requests to be far larger than a single month' s rent or mortgage payment. Third, CROSS expects many families needing COVID- 19- related housing assistance will be families who have not had to access CROSS in the past and therefore might not be aware these funds are available to them. It will be critical to ensure the broadest dissemination of information to the residents of Maple Grove so that they know where to go for help, which will then lead to another influx of requests. We anticipate the cost of serving a single household with financial assistance to prevent homelessness will be approximately$ 3, 140. This breaks out to$ 2, 800 in rent cost( an average of 2 months rent) and $ 340 in staffing and other program costs ( 11%). Providing homelessness prevention assistance to an estimated 100 new Maple Grove families in this situation comes out to the$ 315, 000 we are requesting in CARES funding from the City of Maple Grove. REQUEST FOR EDA ACTION September 21, 2020 EDA 3A DATE AGENDA ITEM ORIGINATING DEPT. AGENDA ITEM CITY ADMINISTRATOR APPROVAL Community and Economic COVID- 19 Recovery 1 Development Loan Fund ( COVID RLF) a Amendments and Funding EDA Resolution No. 22 PREVIOUS ACTIONS: At the meeting of July 20, 2020, the EDA approved EDA Resolution No. 20 authorizing the creation of and funding for the COVID- 19 Recovery Loan Fund. At the work session meeting of September 8, 2020, the City Council gave direction to amend the COVID- 19 Recovery Loan Fund policies and to allocate additional funding to the program. RECOMMENDED COUNCIL ACTION: Motion to approve EDA Resolution No. 22 authorizing amendments to and additional funding for the COVID- 19 Recovery Loan Fund. COMMENTS: Between May and July, the EDA approved the creation of two forgivable loan programs, termed the COVID- 19 Emergency Loan Fund (" COVID ELF") and the COVID- 19 Recovery Loan Fund (" COVID RLF"), to assist businesses which had faced mandated full or partial closures with business operations related expenses. The COVID ELF program was designed to provide emergency funds as the businesses were allowed to re- open and the COVID RLF program was designed to provide funds to advance the recovery of the business. Both the COVID RLF and ELF programs offer similarly structured loans of up to $ 10, 000 with zero percent interest, deferred payments and the ability for a portion or all of the loan to be forgiven. In total, the EDA has previously allocated $ 500, 000 to these programs combined, resulting in a total of 37 businesses receiving funding with additional remaining funds available for approximately four awards. Applications for funding through the COVID RLF program are still being accepted. With the COVID- 19 pandemic affecting businesses across all sectors of the economy, amendments to the COVID RLF policies can be made to allow for additional businesses to be eligible for funding. The proposed amended COVID RLF program policies include the following changes: Eliv-ible Business: removing the requirement that a business had to face a mandated full or partial closure through State of Minnesota orders and replacing the language with a requirement that the business must demonstrate a negative impact as a direct result of COVID- 19. Minimum and Maximum Emblovment: raising the maximum businesses employment of 40 FTE to 50 FTE. Additionally, adding a minimum employment level to the businesses of four (4) employees, not including the business owner. Brett Angell, Project Manager— X6003 COVID RLF Policy Request for EDA Action September 21, 2020 Page 2 Elip-ible Expenditures: adding additional language that permanent or temporary space alterations or enhancements to provide a safer customer or employee experience in response to COVID- 19 is an eligible expense. Deferment Period: reducing the deferment period from four months to 60 days. This will allow for all loan awards to be on the same timeline for deferment and forgiveness. Secondary Awards: allowing for businesses which received funding prior to September 20, 2020, to be eligible for an additional $2, 500 grant award to be used for permanent or temporary physical alterations to their place of business. The additional grant award would allow for funding to ensure necessary enhancements are put in place as shopping and dining services move more indoors in the fall and winter months. Businesses which did not receive previous funding would be encouraged and directed to apply for the standard COVID RLF program. Applications for the COVID RLF program with the above- mentioned amendments will begin to be accepted on September 22, 2020, for businesses which were not previously eligible for funding. Applications will be processed and reviewed in the order in which they are received. All applications will have an initial eligibility and completeness review followed by underwriting by CMDC. Previously funded businesses seeking a secondary award will have a separate application process working directly with economic development staff. Business assistance programs in response to COVID- 19 are an eligible expenditure of funds that local governments received through the CARES Act. An additional allocation of$ 500, 000 will allow for approximately 40- 45 additional businesses to receive funding, dependent on how many secondary grant awards are given. With the additional allocation previously mentioned, it will bring the total amount of businesses assistance offered by the EDA in response to COVID- 19 to $ 1, 000, 000. ATTACHMENTS: Attachment A: EDA Resolution No. 22 Exhibit A: Amended COVID- 19 Recovery Loan Fund Policy Attachment A RESOLUTION NO. 22 ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MAPLE GROVE A RESOLUTION AUTHORIZING AMENDMENTS TO AND ADDITIONAL FUNDING FOR THE COVID- 19 RECOVERY LOAN FUND WHEREAS, the federal Coronavirus Aid, Relief, and Economic Security(" CARES") Act, passed by Congress and signed into law on March 27, 2020, was intended to provide economic relief to state and local governments negatively impacted by the COVID- 19 pandemic; WHEREAS, the City of Maple Grove recently received funding under the CARES Act in the total amount of approximately$ 5. 4 million; WHEREAS, the Economic Development Authority seeks to use a portion of that funding for the COVID- 19 Recovery Loan Fund Program (" COVID- 19 RLF Program"); and WHEREAS, the objective of the COVID- 19 RLF Program is to deploy a local pool of funds to support local small businesses in the City of Maple Grove in order to help to ensure the viability of those businesses as they navigate the COVID- 19 pandemic and seek to return to pre-pandemic operations as soon as safely possible; and WHEREAS, the goals of the COVID- 19 RLF Program may be accomplished by some or all of the following means: a) providing needed financial assistance to small businesses within the community negatively affected financially as a direct result of the COVID- 19 pandemic; b) ensuring the ongoing viability of Maple Grove businesses beyond this crisis; c) limiting the number of job losses resulting from the pandemic by assisting businesses' return to their pre- pandemic employment levels; d) limiting the number of businesses which would potentially permanently close due to COVID- 19 pandemic impacts, and thereby limiting the total number of potential vacancies in key commercial and industrial areas of the City; and WHEREAS, the COVID- 19 RLF Program offers no- interest loans in amounts up to 10, 000, forgivable under certain conditions, to eligible businesses with a physical location in the Maple Grove; WHEREAS, the amended COVID- 19 RLF Program intends to offer grants of up to 2, 500 to previously funded businesses for permanent or temporary physical changes to their space of business in response to COVID- 19; NOW THEREFORE, IT IS RESOLVED by the Board of Commissioners of the EDA, based on the above recitals, information provided by City staff, and information received at the meeting, as follows: 1 1. The EDA hereby amends the COVID- 19 RLF Program and adopts the amended COVID- 19 RECOVERY LOAN FUND POLICY attached hereto as Exhibit A; 2. The EDA hereby allocates $ 500, 000 of available CARES Act funding to be used for the COVID- 19 RLF Program and to be distributed according to that program' s policies and procedures. Motion to approve the foregoing findings, conclusions, and decisions was made by and seconded by upon a vote being duly taken thereon, the following voted in favor thereof: and the following were against: and the following were absent: whereupon, the resolution was declared duly passed and adopted this 21" day of September, 2020. STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) ss. CITY OF MAPLE GROVE ) I, the undersigned, being the duly qualified Secretary of the Economic Development Authority in and for the City of Maple Grove, a public body corporate and politic and a political subdivision of the State of Minnesota, hereby certify that the above Resolution No. 22 is a true and correct copy of the Resolution as adopted by the EDA Board on the 215t day of September, 2020. Secretary 2 Exhibit A MAPLE GROVE COVID- 19 RECOVERY LOAN FUND POLICY Adopted: July 20, 2020 Amended: September 23, 2020 Economic Development Authority of Maple Grove Economic Development Department 12800 Arbor Lakes Parkway Maple Grove, MN 55369 763- 494- 6003 Table of Contents I. Introduction II. Purpose And Authority III. Objectives IV. General Criteria V. Financing Criteria VI. Application Process EDA of Maple Grove— COVID- 19 Recovery Loan Fund Policy 2 I. INTRODUCTION The Economic Development Authority of Maple Grove COVID- 19 Recovery Loan Fund program (" COVID RLF Program") was created as a means to assist businesses within the City of Maple Grove which have been negatively impacted by the COVID- 19 pandemic with funds for business- related expenses as a means to advance the financial recovery of the business. The COVID RLF Program offers no- interest forgivable loans to eligible businesses with a physical location in the Maple Grove. The COVID RLF Program is administered by Community and Economic Development staff and the Economic Development Authority of Maple Grove. II. PURPOSE AND AUTHORITY A. The purpose of this policy is to establish the EDA' s position relating to the use of the COVID RLF Program. This policy shall be used as a guide in the processing and review of applications requesting loan funds. B. The criteria are to be used in conjunction with other relevant policies of the City and/ or EDA. C. The EDA reserves the right to approve or reject projects on a case- by- case basis, taking into consideration factors considered appropriate by the City, in addition to established policies, criteria, and potential benefits. Meeting the criteria does not guarantee a COVID RLF Program loan shall be approved. Approval or denial of an application is at the sole discretion of the EDA. III. OBJECTIVES The objective of the COVID RLF Program is to deploy a local pool of funds to support local small businesses in order to ensure the viability of the businesses as they move past the COVID- 19 pandemic impacts and seek to return to pre- pandemic operations. This may be accomplished by some or all of the following means: A. Provide needed finances to small businesses within the community which have been negatively affected financially as a direct result of the COVID- 19 pandemic; B. Provide financial assistance to allow for businesses to make physical alterations to their place of business to further incorporate best practices in response to COVID- 19; C. Ensure the viability of Maple Grove businesses moving past this crisis; D. Limiting the number of job losses as a direct result of the pandemic by assisting businesses return to their pre- pandemic employment levels; E. Limiting the number of businesses which would potentially permanently close due to COVID- 19 pandemic impacts. Thereby also limiting the total number of potential vacancies in key commercial and industrial areas of the City. EDA of Maple Grove— COVID- 19 Recovery Loan Fund Policy 3 IV. GENERAL CRITERIA A. ELIGIBLE EXPENDITURES The COVID RLF Program may be used for working capital purposes defined as: 1. Paying fixed debts; 2. Payroll costs; 3. Accounts payable; 4. Utility payments; 5. Inventory costs; 6. Purchasing of personal protective equipment ( PPE); 7. Space alterations and enhancements in response to COVID- 19; 8. Paying other direct business- related bills. B. ELIGIBLE BUSINESS DETAILS: To qualify for a COVID RLF Program loan, eligible businesses must meet the following criteria: 1. Be considered an eligible business type, as defined in IV. 0 of this policy; 2. Have a minimum of four( 4) employees, not including the business owner; 3. Have no more than 50 FTE ( full- time equivalent) employees at the location address. Special consideration may be given to businesses which utilize independent contractors and sole proprietors within their business; 4. The business must have a physical non- residential address within the City of Maple Grove. Proof of address shall be required when applying; 5. All business applicants must be an allowed use through zoning of the property or be a legally non- conforming use; 6. Be a legal entity registered with the Minnesota Secretary of State, and be in good standing; 7. Any applicant must not have delinquent taxes, bills or charges due to the City from February 2020 or prior. C. ELIGIBLE BUSINESS TYPES: Eligible businesses which may apply for the COVID RLF Program include for- profit businesses which have faced a negative financial impact as a direct result of COVID- 19. Proof of financial impact must be provided through sales data or business revenues. EDA of Maple Grove— COVID- 19 Recovery Loan Fund Policy 4 D. PREVIOUSLY FUNDED BUSINESSES Businesses which previously received funding through the Maple Grove EDA' s COVID- 19 Emergency Loan Fund or COVID- 19 Recovery Loan Fund prior to September 20, 2020, are eligible to apply for additional funds as described in section V. F of this policy. E. INELIGIBLE ACTIVITIES The COVID RLF Program may not be used for the following activities: 1. Agriculture ( crop or livestock production, etc.); 2. Gambling- related activities; 3. Purchasing of fixed machinery or vehicles; 4. Moving expenses; 5. Land acquisition for speculation; F. REVIEW CRITERIA Assistance must be evaluated on the existence of the following conditions: 1. Demonstrated financial need; 2. Number of jobs retained at the location; 3. Financial ability to continue business operations; 4. Timeliness of funds being needed. G. REQUIRED DOCUMENTS The following documents are required at that time of application. Additional documents may be requested by the EDA, if deemed necessary to completely review and application. 1. Two most recent years of tax returns; 2. Credit check certification form; 3. Personal financial statement; 4. Payroll Report( s) 5. Three- month itemized expense report; 6. Articles of Incorporation; 7. Proof of Address; 8. SBA Form 1368; 9. Debt Schedule EDA of Maple Grove— COVID- 19 Recovery Loan Fund Policy 5 H. EDA RIGHTS The EDA reserves and retains the right to deny any loan application for funding. All loan receipts shall be required to indemnify the City of Maple Grove, the Economic Development Authority of Maple Grove, and any officers acting on their behalf. I. CONFLICT OF INTEREST An officer of the City will not have a personal financial interest or personally benefit financially from the business to be assisted. Minn. Stat. 471. 87 and 471. 88 provide guidance on conflict of interest. J. GOVERNMENT DATA PRACTICES Information contained in the application for assistance will become a matter of public record with the exception of those items protected under Minn. Stat. 13. 591. V. FINANCING CRITERIA A. LOAN SIZE All loans shall have a maximum amount of$ 10, 000. B. INTEREST RATES All loans shall have an interest rate of 0%. C. TERMS All loans shall have a term of no more than five ( 5) years. D. DEFERMENTS All repayments shall be deferred for a total of sixty ( 60) days upon issuance of funds. Any awarded business of a COVID RLF Program loan shall have the ability to repay portions of the loan during the deferment period should the business so choose. E. FORGIVENESS Up to 100% of the loan has the ability to be forgiven by the EDA upon successful completion of the following: 1. If the business maintains operations within the City for sixty ( 60) days upon EDA of Maple Grove— COVID- 19 Recovery Loan Fund Policy 6 award of a COVID RLF loan, 50% of the loan shall be forgiven; 2. If the business returns employment levels to that of pre- pandemic levels within sixty ( 60) days upon award date, the remaining 50% shall be forgiven. F. FEES There shall not be an application fee to apply for a COVID RLF loan. Any fees related to underwriting, legal, loan closing, filing, recording, and other fees incurred will be paid for by the Economic Development Authority at the time of loan issuance. VI. APPLICATION PROCESS All applications for funding from COVID RLF will be accepted on a first-come, first-served basis. Applications will be required to be submitted online at the City of Maple Grove website. Upon submission of an application, City of Maple Grove staff will review the application to ensure complete information is provided. If additional information is needed, staff will request the needed information. Upon funds from the program being requested to the amount of or exceeding the total fund amount, applications will no longer be accepted. VII. SECONDARY AWARDS AND APPLICATION Businesses whom have previously received financial assistance from the Maple Grove EDA, as defined in section IV. D of this policy, are eligible to apply for an additional $ 2, 500 if the business has permanent of temporary physical improvements to their place of business directly in response to COVID- 19. If a business is interested in applying for a secondary award, please contact Brett Angell, Economic Development Manager, at 763) 494- 6003 or bangellPmar legrovemn. gov to determine eligibility and how to apply. EDA of Maple Grove— COVID- 19 Recovery Loan Fund Policy 7

Get email alerts for Maple Grove

A daily email when new agendas and minutes are posted.

Report an issue with this meeting