Laserfiche WebLink
A loan shall become due and payable in full if a business relocates outside of the city of Elk River <br />prior to the maturity date of the loan. <br />Late Payment Charge <br />A late payment charge of 8% of the installment amount will be enforced following a <br />grace period of 10 calendar days. <br />REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br />All buildings which public funds will be used for construction or renovation are to be brought into <br />conformance with city ordinances and state building codes. <br />LOAN SECURITY AND GUARANTEES <br />Applicant must be able to secure the loan by providing the EDA with a minimum of a subordinate <br />mortgage upon the building and /or assets or other approved collateral equal to the amount of the <br />loan. <br />Applicant must demonstrate the financial means to repay the loans, as determined by the EDA. <br />Whenever possible, personal, corporate, and /or entity guarantees will be made part of any loan <br />agreement. <br />Key person life insurance may be required as determined by the EDA Finance Committee based on <br />loan amount and company ownership partners. <br />TIMING OF PROJECT EXPENSES <br />No project should commence until the EDA has approved the loan application. Any costs incurred <br />prior to the approval of the loan application are not eligible expenditures. <br />No building construction should commence until the required city permits are secured. <br />The applicant will be responsible for all legal, recording, and other fees required for protection of a <br />security interest in the loan, payable by a $2,000 processing fee, which is paid at the time of <br />application. In addition to the processing fee, all legal and filing fees shall be paid by the borrower <br />at loan closing. <br />Closing of the N icroloan should be simultaneous with the borrower's primary funding. The EDA <br />should be given two weeks' notice before closing. <br />PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br />1. All applicants shall first contact a primary lending institution to determine if additional <br />equity is needed, and if so, how much (if applicable). <br />2. The applicant shall then meet with city staff to obtain information about the microloan <br />program, discuss the project, and obtain application forms. <br />3. The applicant shall complete and submit an application form to the city, along with a <br />�-- $2,000 processing fee. The fee is used to cover processing expenses and any remaining <br />EDA & City Council Approved April 17, 2017 <br />