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Program
The HLDC program is based on compliance with
the rules and guidelines set forth by the contract between the City of Ham
Lake and the HLDC for the use of the Community Development Block Grant and gambling funds for the purpose
of economic development
Recipient
The loans are granted on a needs basis according to the
businesses financial strengths and weaknesses as well as project plans.
These loans are granted as supplemental financing and usually in a
subordinate position.
Loan purpose
The loan purpose may be,
but is not limited to, down payment on a building acquisition, purchase of
equipment, moving expenses, support cash flow deficiencies, or for the
purchase of office furniture.
Term
Generally the rate and term of the loan is set according to
the purpose and need of the business project. Maximum loan amount is
not to exceed a maximum of 10% of the project total. The interest rate
maximum is not to exceed prime.
Job
creation
Job creation is a requirement of each loan
recipient. On average one job is required for every $35,000 borrowed to be
filled within two years of the loan agreement. The jobs are newly created
positions to be paid a wage at or above the current median wage rate for
Anoka County and offered to persons from low to moderate-income households.
The HLDC, the City of Ham Lake and Anoka County monitors this. Job creation
is in accordance with HUD rules and guidelines.
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