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Revolving Loan Fund Policy Guildelines Page 2 <br /> 4 . PRIORITY OF PROJECTS <br /> Businesses requesting an Economic Development Revolving Loan <br /> must be: <br /> - A for-profit corporation, partnership, or sole <br /> rAA1 proprietorship <br /> A "small business" as defined by the Small Business <br /> Administration (SBA) <br /> Priority for EDA loans shall be given as follows : <br /> First priority - manufacturing or industrial <br /> Second priority - research, development, technology <br /> Third priority - retail, service, and other types of uses . <br /> 5. LOAN AMOUNT <br /> Minimum loan amount will be $5,000.00, and the maximum amount <br /> will be 40% of the total project cost, or $50,000. 00 . whichever <br /> is less . <br /> • Total loans cannot exceed 90% of the estimated market value of <br /> the property upon completion of the project. <br /> The interest rate for all loans will be tied to the lower of the <br /> prime rate of First Bank Minneapolis or Norwest Bank the day <br /> the loan is closed. <br /> Financing terms will not exceed 20 years for land and buildings; <br /> ten years for machinery, equipment and fixtures, and five years <br /> for working capital . <br /> 6 . REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> All building construction or renovation is to be brought into <br /> conformance with city codes and policies . Repairs may include <br /> 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 <br /> energy related improvements. <br /> 7 . LOAN SECURITY AND GUARANTEES <br /> Applicant must be able to secure the loan with at least a junior <br /> mortgage upon the building and/or assets involved for other <br /> • approved collateral . <br /> Applicant must demonstrate the financial means to repay the <br /> loans, as determined by the Economic Development Authority. <br />