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I"orgiN,able Comi-nercial/Industriil Loan is required. A loan shall become due and <br /> payable in full if a business relocates outside of the city ofti'llk River prior to the <br /> m-atur 1 <br /> t), data of the loan. Jobs created must be maintained for a period of 2 years <br /> frorn the dat, . of cl( in Y. ....... <br /> V1111. LOAN SECURITY AND GUARANTEES <br /> Applicant must secure the loan by providing the I-IRA with a minimum of a <br /> subordinate mortgage upon the building and/or assets or other approved collateral. <br /> Personal guarantees and entity guarantees inay be made part of all loan agreements. <br /> Key person life insurance may be required as detertnined by the IIl?-A based on loan <br /> :amount and company ownership partners. <br /> Vill. TIMING OF PROJECT EXPEINSES/PROJIE'CT TIMELINE <br /> No project should commence until the Elk River Housing and Redevelopment <br /> Authority has approved the loan application. Any costs incurred prior to the <br /> approval of the loan application are generally not eligible expenditures. Applicant <br /> must submit project tirrielinewith application; timeline,,,will assist in determining job <br /> creation goal deadlines. <br /> The applicant ill be responsible for all legal,recordinex 1 AusL th �jjred or <br /> g -f!�, xvq <br /> protection of a security interest in the ]oan, pavable by non-refund <br /> ti;rocessing fee, hick is Paid at the time of application, 1-Tr-addition <br /> flon-ref-uwiaNct,000 processing fee, all legal and filing fees shall be paid by the <br /> borrower at loan closing. <br /> X PROCEDURAL, GUIDELINES FOR APPLICATION AND APPROVAL <br /> 1. AN applicants shah first contact a primary lending institution to detenriine if <br /> additional equity,is needed, and if so, how much. <br /> 2. The applicant and the primary lender (if applicable) shall then meet:with City <br /> Staff to obtain information about the I lousing and Redevelopment Blighted <br /> Properties Forgivable Commercial/Industrial Loan program, discuss the project, <br /> and obtain application formas.. <br /> 3, The applicant shall corriplete and subinit an application form to the City,along <br /> %krith a non-refundable Processing fee of$2,000. The applicant must provide <br /> evidence of their ability to meet the equity requirements or provide a letter of <br /> commitment for conventional financing from the primary lending institution if <br /> applicable. <br /> 4. The I IRA is a governmental entity and as such Must provide public access to <br /> public data it receives. Data deemed 1)), Applicant to be nonpublic data under, <br /> State law should be so designated or marked by Applicant. See Minn. Sat, <br /> Sections 13.59, Subd. 1, respectively. <br /> Blighied Properties Forgivable(,olninercial/Industrial Loan Pohcy&Guidelines <br /> Page 5 of 15 <br /> KNAX::tVU6: 1 <br /> 1Ri:E <br />