Laserfiche WebLink
COMMERCIAL/INDUSTRIAL LOAN TERMS & CONDITIONS <br /> Loan Amount <br /> There is a maximum of$75,000 per Blighted Properties Forgivable <br /> Commercial/Industrial Loan. Federal guidelines require a minimum of one job to be <br /> created for every$15,000 requested. To receive maximum loan amount of$75,000, <br /> applicant would need to create five new FTE positions. The minimum wage for a job <br /> to be considered a new or retained job shall be the greater of$15.00 per hour or 150% <br /> of state or federal minimum wage,whichever is greater, exclusive of benefits required by <br /> law. <br /> Wage and benefits must be equal or greater than $12.19/hr. <br /> Loan Structure <br /> All Housing and Redevelopment Authority Blighted Properties Forgivable <br /> Commercial/Industrial Loans shall be structured as direct loans. <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 /> 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 /> 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 /> 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 /> 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 /> 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 /> Blighted Properties Forgivable Commercial/Industrial Loan Policy&Guidelines P D W E H E D D Y <br /> Page 5 of 16lotv'AfUR <br />