Proposed Ordinance - 8/11/2022SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving a $50,000 loan for Kahve Café, LLC from the Economic Development
Loan Fund)
WHEREAS, Salt Lake City Corporation’s (“City”) Economic Development Loan Fund
(“EDLF) is a program to stimulate local business development, encourage private investment,
enhance neighborhood vitality, and boost commercial enterprise in Salt Lake City.
WHEREAS, the EDLF is administered by the Department of Economic Development
(“DED”); loan applications are first prescreened by DED staff, and then reviewed by the EDLF
Loan Committee.
WHEREAS, the EDLF Loan Committee and DED staff recommend the approval of the
attached loan term sheet for a $50,000 loan to Kahve Café, LLC, a limited liability company and
a local business located at 57 South 600 East, Salt Lake City, Utah.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah, that:
SECTION 1. Loan Approval. The City Council approves the loan outlined in the Term
Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations
of the City hereunder. The City Council authorizes the Mayor to negotiate and execute the loan
agreement and any other relevant documents consistent with the Term Sheet, and incorporating
such other terms and agreements as recommended by the City Attorney’s office.
SECTION 2. Effective Date. This ordinance shall become effective on the date of its first
publication.
Passed by the City Council of Salt Lake City, Utah, this ______ day of
_____________________, 2022.
Dan Dugan, Council Chair
ATTEST AND COUNTERSIGN:
______________________________
CITY RECORDER
Transmitted to Mayor on _______________________.
Mayor's Action: _______Approved. _______Vetoed.
______________________________
MAYOR
______________________________
CITY RECORDER
(SEAL)
Bill No. ________ of 2022.
Published: ______________.
APPROVED AS TO FORM
Salt Lake City Attorney’s Office
Date:
Sara Montoya, City Attorney
August 9, 2022
LOAN TERM SHEET
Applicant: Kahve Cafe, LLC
Address: 57 S 600 E
Proposed Loan Terms
Loan Amount: $50,000
Loan Terms: 7 Years
Interest Rate Calculation: Prime Interest Rate: 3.25% (at time of application)
EDLF Charge: 8%
Less Discount: 4%
Woman Owned
Final Interest Rate: 7.25%
Use of Funds: Working Capital, Staffing, Payroll
Business Type: Start-up
Collateral and Guarantees: Real Estate, Vehicles, Equipment, Inventory
Personal Guarantees: Elif Ekin
Conditions for Closing: Obtain all City approvals, execute all loan documents as deemed necessary by
City legal counsel and DED staff, such other terms as recommended by City legal counsel and DED staff