4.1. EDSR 01-31-2017 - Laserfiche WebLink

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PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL All applicants shall first contact a primary lending institution to determine if additional equity is needed, and if so,how much. 1. The applicant shall then meet with city staff to obtain information about the Microloan program, discuss the project, and obtain application forms. 2. The applicant shall complete and submit an application form to the city, along with a$2,000 processing fee. (The fee is used to cover processing expenses and any remaining funds will be refunded.) 3. The applicant must provide evidence of their ability to meet the 10% equity requirements or provide a letter of commitment for conventional financing from the primary lending institution. 4. The EDA is a governmental entity and as such must provide public access to public data it receives. Data deemed by Applicant to be nonpublic data under State law should be so designated or marked by Applicant. See Minn. Sat. Sections 13.59, Subd. 1,respectively. 5. The application will be reviewed by the city staff to determine if it conforms to all city policies and ordinances and to consider the following: a. The availability and applicability of other governmental grants and/or loan programs. b. Whether the proposed project will result in conformance with building and zoning codes. c. Whether it is desirous and in the best interests of the public to provide funding for the project. 6. EDA staff will complete a financial review and present it to the EDA Finance Committee. 7. The EDA Finance Committee and EDA Commissioners will review each application in terms of its consistency with the goals of the city's Comprehensive Plan and Economic Development Strategic Plan and in relation to the project's overall impact on the community's economy. 8. The EDA Finance Committee will evaluate the project application in terms of the following: a. Project Design - Evaluation of project design will include review of proposed activities, time lines and a capacity to implement. b. Financial Feasibility- Availability of funds,private involvement, financial packaging and cost effectiveness. c. Appropriate ratio of private funds to 1Vlicroloan funds. d. Sufficient cash flow to cover proposed debt service as demonstrated by financial statements and projections. e. Ability to demonstrate a positive net worth. f. Letter of Commitment from applicant pledging to complete the project during proposed project duration,if the loan application is approved. g. Letter of Commitment from other financing sources stating terms and conditions of their participation in the project if applicable. h. Sufficient collateral.