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Micro Loan Fund Policy Guidelines Page 4 <br /> • Business must be a for-profit corporation, partnership, or sole <br /> proprietorship. <br /> • Business must be a small business as defined by the Small <br /> Business Administration (SBA). <br /> • Business must have a positive net worth. <br /> • Religious, political, and pornographic enterprises are not <br /> eligible to use the Economic Development Micro Loan Fund. <br /> V. MICRO LOAN FUND TERMS & CONDITIONS <br /> 1. Loan Structure <br /> All EDA Micro Loans will be structured as participation loans and will <br /> be serviced by the project's primary lending institution. Such an <br /> arrangement allows for the central distribution and collection of funds <br /> and simplifies the financing process for all parties involved. A <br /> participation agreement will be signed by the borrower, primary lender <br /> and the EDA. <br /> 2. Simultaneous Micro Loans <br /> The simultaneous use of different Micro Loan Fund Programs by any <br /> one borrower 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 <br /> outside of the city of Elk River prior to the maturity date of the EDA <br /> loan. <br /> VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> All buildings within which public funds will be used for construction or <br /> renovation are to be brought into conformance with city codes and <br /> policies. Repairs may include the following systems and portions or <br /> 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 <br /> minimum of a subordinate mortgage upon the building and/or assets or <br /> other approved collateral. <br /> 411 <br /> 4 <br />