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Applicant must demonstrate the financial means to repay the loans,as determined by <br /> the Economic Development Authority. <br /> Whenever possible,personal guarantees will be made part of any loan agreement. <br /> Key person life insurance may be required as determined by the EDA Finance <br /> Committee based on loan amount and company ownership partners. <br /> VIII. TIMING OF PROJECT EXPENSES <br /> No project should commence until the Elk River Economic Development Authority <br /> has approved the loan application. Any costs incurred prior to the approval of the <br /> loan application are generally not eligible expenditures. <br /> No building construction should commence until the required city permits are <br /> secured. <br /> The applicant will be responsible for all legal,recording,and other fees required for <br /> protection of a security interest in the loan,payable by a non-refundable 1% <br /> processing fee,which is paid at the time of application. In addition to the <br /> non-refundable 1%processing fee,all legal and filing fees shall be paid by the <br /> borrower at loan closing. <br /> IX. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br /> 1. All applicants shall first contact a primary lending institution to determine if <br /> additional equity is needed,and if so,how much. <br /> 2. The applicant and the primary lender shall then meet with city staff to obtain <br /> information about the Microloan program,discuss the project, and obtain <br /> application forms. <br /> 3. The applicant shall complete and submit an application form to the city,along <br /> with a processing fee of 1% of the loan request. (The fee is used to cover <br /> processing expenses and will be returned only if application is denied.) The <br /> applicant must provide evidence of their ability to meet the equity requirements <br /> or provide a letter of commitment for conventional financing from the primary <br /> lending institution. <br /> 4. The EDA is a governmental entity and as such must provide public access to <br /> public data it receives. Data deemed by Applicant to be nonpublic data under <br /> State law should be so designated or marked by Applicant. See Minn. Sat. <br /> Sections 13.59, Subd. 1,respectively. <br /> 5. The application will be reviewed by the city staff to determine if it conforms to <br /> all city policies and ordinances and to consider the following: <br /> a. The availability and applicability of other governmental grants and/or <br /> loan programs. <br /> Page 7 of 15 1I ■ ERE , I ► <br /> INALUREI <br />