Laserfiche WebLink
2. The applicant and the primary lender shall then meet with City Staff to obtain <br /> • information about the Micro Loan program, discuss the project, and obtain <br /> application forms. <br /> 3. The applicant shall complete and submit an application form to the City, along <br /> with a processing fee of 1% of the loan request. (The fee is used to cover <br /> processing expenses and will be returned if application is denied.) The applicant <br /> must provide evidence of their ability to meet the equity requirements or provide <br /> a letter of 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 conforms to <br /> all City policies and ordinances and to consider the following: <br /> a. The availability and applicability of other governmental grants and/or <br /> loang <br /> Pro rams. <br /> b. Whether the proposed project will result in conformance with building <br /> and zoning codes. <br /> c. Whether it is desirous and in the best interests of the public to provide <br /> funding for the project. <br /> 5. The EDA Finance Committee and EDA Commissioners will review each <br /> application in terms of its consistency with the goals of the Growth <br /> Management, Strategic, and Economic Development Plans and in relation to the <br /> project's overall impact on the community's economy. Redevelopment Loan <br /> • applications will also be reviewed by an HRA member in conjunction with the <br /> EDA Finance Committee. <br /> They will also evaluate the project application in terms of the following: <br /> a. Project Design -Evaluation of project design will include <br /> review of proposed activities,time lines and a capacity to implement. <br /> b. Financial Feasibility-Availability of funds,private involvement, financial <br /> packaging and cost effectiveness. <br /> • Appropriate ratio of private funds to Micro Loan funds. <br /> • Sufficient cash flow to cover proposed debt service as <br /> demonstrated by financial statements and projections. <br /> • Business must show a positive net worth. <br /> • Letter of Commitment from applicant pledging to complete the <br /> project during proposed project duration,if the loan application <br /> is approved. <br /> • <br /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines <br /> Revised June 2004 Page 6 of 8 <br />