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created for every $15,000 requested. To receive maximum loan amount of $75,000, <br />applicant would need to create five new FTE positions. Wage and benefits must be <br />equal or greater than $12.19/hr. <br /> <br /> <br />Loan Structure <br />All Housing and Redevelopment Authority Blighted Properties Forgivable <br />Commercial/Industrial Loans shall be structured as direct loans. <br /> <br />Applicant must provide at least 50% of project cost through other means. Equity <br />down payment requirements may vary depending on project and primary lending <br />institution. Blighted Properties Forgivable Commercial/Industrial Loan funds may <br />be used as equity upon approval of primary lending institution <br /> <br />The HRA may require additional agreements to be signed by the borrower <br />(i.e. mortgage, promissory note, security agreement, personal guarantees, business <br />subsidy agreement). <br /> <br />Other HRA Incentives <br />Projects can combine the Blighted Properties Forgivable Commercial/Industrial <br />Loan with all other incentives (i.e.: Micro Loan Program, Tax Abatement, TIF, etc.) <br /> <br />Evaluate Building(s) Existing Condition <br />An evaluation must be conducted to determine if the building(s) is structurally <br />substandard by a licensed structural engineer with experience in inspection and <br />facility assessment projects. Structurally substandard shall mean containing defects in <br />structural elements or a combination of deficiencies in essential utilities and facilities, <br />light and ventilation, fire protection including adequate egress, layout and condition <br />of interior partitions, or similar factors, which defects or deficiencies are of sufficient <br />total significance to justify substantial renovation or clearance. <br /> <br />Deliver a written narrative analysis of the property describing why the property does <br />or does not meet the criteria as “structurally substandard” as established in <br />Minnesota Statutes Section 117.025, subdivision 7. <br /> <br /> <br /> <br />Call of Loan <br />Blighted Properties Forgivable Loan terms are set by the HRA. Projects which don’t <br />meet the terms may be required to repay all or a portion of the loan as determined in <br />the loan agreement. A job creation extension may be granted upon review of the <br />Housing and Redevelopment Authority on a case by case basis, except as otherwise <br />required by law. Repayment terms will vary depending on the use of funds and <br />collateral securing the loan. Specific repayment terms will be defined in the loan <br />agreement in the event repayment of part or the entire Blighted Properties <br />Forgivable Commercial/Industrial Loan is required. A loan shall become due and <br />payable in full if a business relocates outside of the city of Elk River prior to the <br />maturity date of the loan. Jobs created must be maintained for a period of 2 years <br />from the date of closing. <br /> <br /> <br /> <br />Blighted Properties Forgivable Commercial/Industrial Loan Policy & Guidelines <br /> <br /> <br />Page 4 of 15 <br /> <br />