6.3. SR 06-21-2004 - Laserfiche WebLink

Home Browse Search

VIII. IX. TIMING OF PROJECT EXPENSES No project should commence until the El_k River Economic Development has approved the loan application. Any costs incurred prior to the approval of the loan application are generally not eli~ble expenditures. No building construction should commence und2 the required City, permits are secured. The applicant will be responsible for all legal, recording, and other fees required for protection of a security interest in the loan, payable by a 15/0 processing fee, which is paid at the time of application. PROCEDURAl' GUIDELINES FOR APPLICATION AND APPROVAL 1. All applicants shall first contact a primary lending institution to determine if additional equity is needed, and if so, how much. The applicant and the primary lender shall then meet with Ciw Staff to obtain information about the Micro Loan program, discuss the project, and obtain application forms. The applicant shall complete and submit an application form to the City, along ~4th a processing fee of 1% of the loan request. (The fee is used to cover processing expenses and w/il be returned if application is denied.) The applicant must provide evidence of their ability, to meet the equity requirements or provide a letter of commitment for conventional f'mancLng from the pr/mary lending institution. The application w/il be reviewed by the City staff to determine if it conforms to alt City policies and ordinances and to consider the following: a. The availability, and applicability of other governmental grants and/or loan programs. b. x~2~ether the proposed project will result in conformance with building and zoning codes. c. Whether it is desirous and in the best interests of the public to provide funding for the project. The EDA Finance Committee and EDA Commissioners will review each application in terms of its consistency with the goals of the Growth Management, Scrate~c, and Economic Development Plans a-nd in relation to the project's overall impact on the communitT's economy. Redevelopment Loan applications will also be reviewed bv an HP-~5 member in conjunction with r_he EDA Finance Committee. They will also evaluate the project application in terms of the follo~-ing: a. Project Design- Evaluation of project design w/il include review of proposed acr/viries, me lines and a capacir7 to implement. E~k .River Econormc Development Author:~ Micro Loan Fund Pol/cy & Guide~anes Page 6 of 8