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DEFINITION OF PUBLIC PURPOSE <br /> 1. To provide loans for creditworthy businesses that creates new jobs. <br /> 2. To provide loans for creditworthy businesses that would increase the community tax base. <br /> 3. To assist new or existing industrial and commercial businesses to improve or expand their <br /> operations. <br /> 4. To provide loans to be used as a secondary source of financing that is intended to <br /> supplement conventional financing(bank financing). <br /> 5. To provide loans in situations in which funding gap exists. <br /> 6. To provide funds for economic development that could be used to assist in obtaining other <br /> funds such as Small Business Administration loans, federal and state grants,etc. <br /> THE HASTINGS ECONOMIC DEVELOPMENT FUND POLICIES <br /> I. BUSINESS ELIGIBILITY <br /> • Industrial businesses. <br /> • Non competitive commercial businesses which enhance the community. <br /> • Creditworthy existing businesses located within Hastings. <br /> • Non-credit worthy start-up businesses with worthy feasibility studies at the <br /> discretion of the City. <br /> II. LOAN AMOUNT <br /> • $10,000 loan per each job created, or $5,000 per every$20,000 increase in property <br /> market valuation, or$5,000 per every$20,000 increase in personal property used for <br /> business purposes,whichever is higher. <br /> III. FINANCING METHOD <br /> • COMPANION DIRECT LOAN Example: Equity 20%, HEDF 30%, and bank <br /> 50%. (All such loans may be subordinated to <br /> the primary lender(s) if requested by the <br /> primary lenders(s). HEDF loan is leveraged <br /> and the lower interest rate of the HEDF <br /> lowers the effective interest rate on the entire <br /> proj ect). <br />