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· Business must be a £or-profit corporation, partnership, or sole <br /> proprietorskip. <br />· Business must be g ;mar buzinesz as defined by the Small Business <br /> Admimsn:anon (SBA). <br />· Business must have a positive net worth. <br />, Religious, politiczl, znd pomogrzphic enterprises gtc not eligible ro use <br /> the Econormc Development Micro Loan Fund. <br /> <br />Vo <br /> <br />¥1. <br /> <br />MICRO LOAN FUND TERMS & CONDITIONS <br /> <br />1. Loan Structure <br />All EDA Micro Loans will be structured as partidpation loans and will be serviced by <br />the project's primary, lending institution. Such an arrangement allows for r_he cenr_rai <br />distribution and collection of funds and simplifies the £mancing process for all <br />parties involved. A parfcipation agreement will be signed by the borrower, primary <br />lender and the EDA. The EDA may require additional a~eements to be signed by <br />the borrower (i.e. security agreement, personal guarantees, job performance <br />agreement). <br /> <br />2. Simultaneous Micro Loans <br />The simultaneous use of different IVScro Loan Fund Programs by any one borrower <br />or for any one project is prohibited. <br /> <br />3. 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 EDA loan. <br /> <br />4. Late Payment Charge <br />A late payment charge of up to 8% of the installment amount may be enforced. <br /> <br />REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> <br />All buildings which public funds will be used for construction or renovation are to <br />be brought into conformance w/th city codes and policies. Repairs may include the <br />follo,xing systems and portions o£ real property: <br />a. Mecharfical heating, plumbing, and electrical <br />b. Structural; including the facade of the structure and energ7 related <br /> improvements. <br />c. Hook-up to city services (i.e. water, sewer) <br /> <br />VII. <br /> <br />LOAN SECURITY AND GUARANTEES <br /> <br />_A. pplicant must be able to secure the loan by ?roviding the EDA with a mimmum o£ <br />a subordinate mortgage upon the building and/or assets or odaer approved collateral. <br /> <br />Applicant must demonstrate the financial means to repay the loans, as determined by <br />dxe Economic Development Authority. <br /> <br /> ~nnenever possible, personal guarantees x¢21 be made part of any loan a~eement. <br /> <br />Elk River Econormc Development Aurhor/tF.' <br />Nficro Loan Fund Policy & Guidelines Page 5 of 8 <br /> <br /> <br />