5.0. - 12.0. EDSR 05-10-1993 - Laserfiche WebLink

Home Browse Search

Revolving Loan Fund Policy Guildelines Page 3 111 7 . LOAN SECURITY AND GUARANTEES Applicant must be able to secure the loan with at least a junior mortgage upon the building and/or assets involved for other approved collateral . Applicant must demonstrate the financial means to repay the loans, as determined by the Economic Development Authority. 8 . TIMING OF PROJECT EXPENSES No project may commence until the Elk River Economic Development Authority has approved the loan application. Any costs incurred prior to the approval of the loan application are not eligible expenditures . No building construction may commence until the required City permits are secured. The applicant will be responsible for all legal, recording and other fees required for protecting a security interest in the loan. 9 . PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL • A. Application and Review A loan applicant will meet with the City' s Economic Development Coordinator to obtain information about the Economic Development Revolving Loan Fund, discuss the proposed project and obtain application forms . A completed application form, together with a nonrefundable processing fee of 1% of the loan request, must be submitted to the Elk River Economic Development Authority prior to review and consideration. The fee is used to cover City expenses for processing the application. The applicant must obtain a commitment for primary financing from a bank or other common guaranteed lending institution before initiating a request for an EDA loan. The commitment for primary financing must be evidenced by a letter stating that conventional financing has been maximized and the project may not be undertaken without supplemental financing from the EDA. The application is reviewed by the City staff to determine if it conforms to all city policies and ordinances and to consider the following: 1 . The availability and applicability of other governmental grants and/or loan programs .