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The EDA may require additional agreements to be signed by the borrower (i.e. <br /> security agreement, personal guarantees, job performance agreement). <br /> • 2. Simultaneous Micro Loans <br /> The simultaneous use of different Micro Loan Fund Programs by any one borrower <br /> or for any one project is prohibited. <br /> 3. Call of Loan <br /> A loan shall become due and payable in full if a business relocates outside of the city <br /> of Elk River prior to the maturity date of the EDA loan. <br /> 4. Late Payment Charge <br /> A late payment charge of up to 8% of the installment amount may be enforced. <br /> VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> All buildings which public funds will be used for construction or renovation are to <br /> be brought into conformance with city codes and policies. Repairs may include the <br /> following systems and portions of real property: <br /> a. Mechanical heating, plumbing, and electrical <br /> b. Structural;including the facade of the structure and energy related <br /> improvements. <br /> c. Hook-up to city services (i.e. water, sewer) <br /> VII. LOAN SECURITY AND GUARANTEES <br /> 11) Applicant must be able to secure the loan by providing the EDA with a minimum of <br /> a subordinate mortgage upon the building and/or assets or other approved collateral. <br /> Applicant must demonstrate the financial means to repay the loans, as determined by <br /> the Economic Development Authority. <br /> Whenever possible, personal guarantees will be made part of any loan agreement. <br /> VIII. TIMING OF PROJECT EXPENSES <br /> No project should commence until the Elk River Economic Development Authority <br /> has approved the loan application. Any costs incurred prior to the approval of the <br /> loan application are generally not eligible expenditures. <br /> No building construction should commence until the required City permits are <br /> secured. <br /> The applicant will be responsible for all legal, recording, and other fees required for <br /> protection of a security interest in the loan, payable by a 1% processing fee,which is <br /> paid at the time of application. <br /> IX. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br /> • 1. All applicants shall first contact a primary lending institution to determine if <br /> additional equity is needed, and if so, how much. <br /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines <br /> Revised June 2004 Page 5 of 8 <br />