7.1. SR 10-17-2016 - Laserfiche WebLink

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5. Disbursement of Loan. Upon receipt by Lender of all of the items required pursuant to Section 4 above, with the exception of item (o) which shall be delivered after construction has been completed, in the form and condition required therein and confirmation from Title that Title is prepared to issue the mortgagee’s title insurance policy as required herein, Lender agrees to disburse the Loan proceeds to Borrower. 6. Forgivable Loan Requirements and Covenants. (a) Loan Forgiveness Program. This Loan is made pursuant to the Lender’s Forgivable Loan Program. From and after the Closing Date through and until the Conversion Date (as defined below), Borrower shall not be required to make any payments of principal or interest, though interest shall accrue at the interest rate set forth in the Note. (b) Reporting. On each anniversary of the Closing Date, Borrower shall provide an annual report in a form acceptable to Lender, certified by an officer of Borrower, reporting: (i) the number of jobs created by Borrower; (ii) the hourly wage paid to each position; (iii) average weekly hours worked by each employee; and (iv) the location of the business, and each annual reports shall have the pay stubs for each employee attached. (c) Guidelines. The Loan will be forgiven as set forth below if Borrower meets all of the following requirements: (i) Location/Existence. Upon the delivery of a certificate of occupancy for the Project, the Borrower’s business will be located in Elk River and has been open for business as a going concern. (ii) Job Creation/Maintenance. The Borrower has relocated 18 jobs to the City and has created not less than 7 new jobs from and after the date of completion of the Project, which date shall be the date the Certificate of Occupancy for the Loan Property is issued (the “Benefit Date”). For the relocated and created jobs: (A) the salary/wage of each position must be $15.00/hour or greater; (B) at least 13 of the created jobs must be filled by a person who meets State of Minnesota’s most current low to moderate income guidelines; (C) the employee filling such job must have worked for at least 1,750 hours in any 12 month period; provided that the 12-month period shall commence no later than the 2 year anniversary of the Benefit Date. If the employee initially hired to any created position leaves or is terminated prior to completing the required time of employment, Lender may allow a replacement employee hired to fill the position to complete the requirements of this section, in the sole discretion of Lender as to: (X) whether to allow such “tacking”; and (Y) the terms and conditions of such completion. 5 487521v2 EL185-45