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• Business must be a for-profit corporation,partnership,or sole <br /> proprietorship. <br /> • Business must be a small business as defined by the Small Business <br /> Administration (SBA). <br /> • Business must have a positive net worth. <br /> • Religious,political,and pornographic enterprises are not eligible to use <br /> the Economic Development Microloan Fund. <br /> V. MICROLOAN FUND TERMS & CONDITIONS <br /> Loan Structure <br /> All Economic Development Microloans shall be structured as participation loans and <br /> serviced by the project's primary lending institution,rather than as a direct loan, <br /> unless otherwise approved by the EDA Finance Committee. Such an arrangement <br /> allows for the central distribution and collection of funds and simplifies the financing <br /> process for all parties involved. A participation agreement will be signed by the <br /> borrower,primary lender and the EDA. <br /> The EDA may require additional agreements to be signed by the borrower <br /> (i.e. security agreement,personal guarantees,business subsidy agreement). <br /> Simultaneous Microloans <br /> The simultaneous use of different Microloan Fund Programs by any one borrower or <br /> for any one project is prohibited. <br /> Call of Loan <br /> A loan shall become due and payable in full if a business relocates outside of the city <br /> of Elk River prior to the maturity date of the loan. <br /> Late Payment Charge <br /> A late payment charge of 8% of the installment amount may be enforced. <br /> VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> All buildings which public funds will be used for construction or renovation are to <br /> be brought into conformance with city ordinances and state building codes. Repairs <br /> may include the following systems and portions of real property: <br /> a. Mechanical heating,plumbing, and electrical <br /> b. Structural;including the facade of the structure and energy related <br /> improvements. <br /> c. Hook-up to city services (i.e.water, sewer) <br /> d. ADA (Americans with Disabilities Act) improvements <br /> VII. LOAN SECURITY AND GUARANTEES <br /> Applicant must be able to secure the loan by providing the EDA with a minimum of <br /> a subordinate mortgage upon the building and/or assets or other approved collateral. <br /> Page 6of15 f O M E 0 E 0 0 1 <br /> INAIUREI <br />