DATE: December 19, 2019
TO: Members of the Economic Development Authority
FROM: Nate Carlson, Economic Development Coordinator
Title
EDA Revolving Loan Application - All Flex Flexible Circuits, LLC
Body
SUMMARY AND ACTION REQUESTED:
The EDA Board shall review the application for an EDA Loan for All Flex Flexible Circuits, LLC as part of the MIF application. The EDA shall make a motion to draft loan documents contingent upon the approval of the MIF award. The EDA Board will take formal action on the loan following the MIF approval.
BACKGROUND:
As part of the MIF Application, the EDA has the opportunity to take part in this expansion effort of All Flex by offering a low-interest loan to supplement the application. DEED encourages local support when scoring the application. At this time, the EDA should consider whether the EDA would pledge a low-interest loan to All Flex should DEED approve the MIF application. Staff recommends using the EDA 293 fund as a source of this potential loan to offer a $50,000 loan to All Flex.
The EDA Loan Committee reviewed this application and recommended that the EDA make a motion to draft loan documents for a $50,000 Revolving Loan to All Flex Flexible Circuits, LLC.
ANALYSIS:
The EDA loan would be fully secured with a second lien position on the capital equipment purchased by All Flex.
OPTIONS:
The EDA has the following options:
• Make a motion to draft loan documents for a $50,000 Revolving Loan.
• Take no action.
RECOMMENDATION:
Staff recommends the EDA make a motion to draft loan documents for a $50,000 loan to All Flex contingent upon the approval of MIF funding.