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4. BUSINESSES ELIGIBILITY <br /> Any project meedq4 the above criteria, and located or proposed to be located within <br /> the city limits of Elk River as defined by this program,may= be eligible for an <br /> Economic Development Microloanas further defined herein: <br /> • L-InIcss othei�,risc stated, business must be a for-profit corl.-.)onatioll, <br /> partnership, or sole proprietorship. <br /> • Business must be as;,na11bio7'11exs as defined by the Small Business <br /> Administration (SB,A). <br /> ® Business must have a positive net worth. <br /> • Religious,political, and pornographic enterprises are not eligible to use <br /> the E'conomic Development Microloan Fund. <br /> 5, MICROLOAN FUND TERMS & CONDITIONS <br /> Loan Structure <br /> All F''conomic Development Nficroloans shall be structured as participation loons and <br /> serviced by the project's primary lending institution,rather than as a direct loan, <br /> unless otherwise approved by the EDA Finance Committee. Such an arrangement <br /> allows for the central distribution and collection of funds and simplifies the financing <br /> process for all parties involved. A participation agreement will be signed by the <br /> borrower, primary lender and the EDA. <br /> The FDA rnay require additional agreements to be: signed by the borrower <br /> (i,e, security agreement, personal guarantees,business subsidy agreement). <br /> Simultaneous Microloans <br /> 1"he simultaneous use of different Microloan Fund Programs by any one borrower or <br /> for any one project is prohibited. <br /> Loan Repayment <br /> jobs Incentive funds, including principal and interest received may not be used to <br /> support restaurant, retail, casinos,or sports facilities. <br /> 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 rriaturity date of the loan. <br /> Late Payment Charge <br /> .11" late payment charge of of the installment amount may be enforced, <br /> 6. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> All buildings which public funds will be used for construction or renovation are to <br /> be brought into u.mfortriance with city ordinances and state building codes. Repairs <br /> may include the following systems and portions of real property: <br /> a. Mechanical heating, plumbing, and electrical <br /> P I N [ t I1 l 6 1 <br /> Page 7 of 17 NAMPE <br /> [&�--R <br />