6.1 EDSR 11-17-2014 - Laserfiche WebLink

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d. Inventory 4. BUSINESSES ELIGIBILITY Any project meeting the above criteria, and located or proposed to be located within the city limits of Elk River as defined by this program,may be eligible for an Economic Development Microloan as further defined herein: • Unless otherwise stated,business must be a for-profit corporation, partnership, or sole proprietorship. • Business must be a small business as defined by the Small Business Administration (SBA). • Business must have a positive net worth. • Religious,political, and pornographic enterprises are not eligible to use the Economic Development Microloan Fund. 5. MICROLOAN FUND TERMS & CONDITIONS Loan Structure All Economic Development Microloans shall be structured as participation loans and serviced by the project's primary lending institution, rather than as a direct loan, unless otherwise approved by the EDA Finance Committee. Such an arrangement allows for the central distribution and collection of funds and simplifies the financing process for all parties involved. A participation agreement will be signed by the borrower,primary lender and the EDA. The EDA may require additional agreements to be signed by the borrower (i.e. security agreement, personal guarantees,business subsidy agreement). Simultaneous Microloans The simultaneous use of different Microloan Fund Programs by any one borrower or for any one project is prohibited. Loan Repayment Jobs Incentive funds,including principal and interest received may not he used to support restaurant, retail, casinos, or sports facilities. Call of Loan A loan shall become due and payable in full if a business relocates outside of the city of Elk River prior to the maturity date of the loan. Late Payment Charge A late payment charge of 8°% of the installment amount may be enforced. P D I E D E D D I Page 7 of 18 NATURE