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Micro Loan Fund Policy Guidelines Page 5 <br /> Applicant must demonstrate the financial means to repay the loans, as <br /> determined by the Economic Development Authority. <br /> Whenever possible, personal guarantees will be made part of any loan <br /> agreement. <br /> VIII. TIMING OF PROJECT EXPENSES <br /> No project should commence until the Elk River Economic <br /> Development Authority has approved the loan application. Any costs <br /> incurred prior to the approval of the loan application are generally not <br /> eligible expenditures. <br /> No building construction should commence until the required City <br /> permits are secured. <br /> The applicant will be responsible for all legal, recording, and other fees <br /> required for protection of a security interest in the loan. <br /> IX. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br /> • 1. All applicants shall first contact a primary lending institution <br /> to determine if additional equity is needed, and if so, how much. <br /> 2. The applicant and the primary lender shall then meet with City <br /> Staff to obtain information about the micro loan program, discuss <br /> the project, and obtain application forms. <br /> 3. The applicant shall complete and submit an application form to the <br /> City, along with a processing fee of 1% of the loan request. (The fee <br /> is used to cover processing expenses and will be returned if <br /> application is denied.) The applicant must provide evidence of their <br /> ability to meet the equity requirements or provide a letter of <br /> commitment for conventional financing from the primary lending <br /> institution. <br /> 4. The application will be reviewed by the City staff to determine if it <br /> conforms to all City policies and ordinances and to consider the <br /> following: <br /> a. The availability and applicability of other governmental <br /> IPgrants and/or loan programs. <br /> 5 <br />