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Loan Procedure

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The Ham Lake Development Company offers low interest loans to businesses expanding or moving into Ham Lake. Visit our Low Interest Loan page for more information.

Inquiry/Application

A letter is requested of the business to provide the following information:

Amount of funds needed
Explanation of the project
Project estimates & plans
Financial sources of funds
3 years business financial statements
Personal financial statement of all owners

Print out the application

HLDC reviews request

The HLDC board reviews the request for program compliance, needs, and economic benefit. For example:

Job creation
Increase local property tax revenues
Utilization of available vacant land – conforming
Providing a needed service in the community

If the project seems to fit the loan criteria, the board conceptually approves a loan subject to further financial review and compliance with all ordinances and guidelines. A letter is mailed that the board will consider their request and terms and conditions will be communicated to them in the future.

If the project does not seem to fit, a letter is mailed to the business with an explanation and the business may change their request to better comply. EX: More cash is required down, building not owner occupied etc.

Approval terms & conditions

The HLDC’s financial analyst reviews all financials to determine financial needs by using some of the following tools.

Credit report is pulled on the individual owners
RMA industry standards are used for comparison
Financial strengths & weaknesses are determined by Key Ratios
Sales & profit growth from the last 3 years are compared

Board approves terms

Letter of Approval is mailed to business pending city council approval and final approval of their primary lender.

Example of terms:

Rates 0 to Prime (5% is average)
Number of low-moderate income jobs to be created is 1/$35,000.00 of loan
Term of 3 to 15 years depending on collateral
Maximum loan amount is 10% of total project costs on real estate
Fees are minimal – No origination fees or Points

Loan closing

City of Ham Lake approves loan request at council meeting. Closing is scheduled. Loan documents are prepared by the HLDC attorney and funds are requested from City of Ham Lake. The business is asked to complete Job Interview Forms and mail them to the Ham Lake Development Company. The HLDC will make copies and forward to the Anoka County Community Development when hiring for a new position.

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