Loan Procedure

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Loan Procedure

What's New!

The Ham Lake Development Company is accepting applications for Board of Directors members. Click herehere for an 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 here


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/$50,000.00 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.