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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 /> 7. 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 /> 8. 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 /> 9. 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 /> P 0 W E 0 E 0 0 V <br /> Page 8of18 INAMPE1 <br />