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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°/0 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 /> 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 /> 11110 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 /> loan programs. <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 /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines Page 6 of 8 <br />