Laserfiche WebLink
2. Ineligible Fund Uses: <br /> a. Expenditures for the construction and/or renovation of residential units <br /> b. Working capital <br /> c. Refinancing of existing debt <br /> d. Inventory <br /> 41V. BUSINESSES ELIGIBILITY <br /> Any project meeting the above criteria, and located or proposed to be located within <br /> the city limits of Elk River as defined by this program, may be eligible for an <br /> Economic Development Microloan as further defined herein: <br /> • Unless otherwise stated,Bbusiness must be a for-profit corporation, <br /> partnership, or sole 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 /> 5V. 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 /> 6W. 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 /> Page 6of16 POWERED RY <br /> NATURE <br />