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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 /> VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> All buildings within which public funds will be used for construction or renovation <br /> are to be brought into conformance with city codes and policies. Repairs may <br /> include the 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 /> VII. LOAN SECURITY AND GUARANTEES <br /> 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. <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 foams. <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 /> Elk River Economic Development Authority <br /> Micro Loan Fund Policy&Guidelines Page 5 of 8 <br />