5.0. HRSR 09-27-1999 - Laserfiche WebLink

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Micro Loan Fund Policy Guidelines Page 4 • may be eligible for an Economic Development Micro Loan as further defined herein: • 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 Micro Loan Fund. V. MICRO LOAN FUND TERMS & CONDITIONS 1. Loan Structure All EDA Micro Loans will be structured as participation loans and will be serviced by the project's primary lending institution. 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. 2. Simultaneous Micro Loans • The simultaneous use of different Micro Loan Fund Programs by any one borrower or for any one project is prohibited. 3. 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 EDA loan. VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS All buildings within which public funds will be used for construction or renovation are to be brought into conformance with city codes and policies. Repairs may include the following systems and portions or real property: a. Mechanical heating, plumbing, and electrical b. Structural; including the facade of the structure and energy related improvements. VII. LOAN SECURITY AND GUARANTEES Applicant must be able to secure the loan by providing the EDA with a • minimum of a subordinate mortgage upon the building and/or assets or other approved collateral. 4