Laserfiche WebLink
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 /> V . 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 /> 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 /> 4IX. 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 /> Page 7of16 P 0 O E O E O O Y <br />