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<br />Micro Loan Fund Policy Guidelines <br /> <br />Page 4 <br /> <br />. Business must be a for-profit corporation, partnership, or sole . <br />proprietorship. <br />. Business must be a small business as defined by the Small <br />Business Administration (SBA). <br />. Business must have a positive net worth. <br />. Religious, political, and pornographic enterprises are not <br />eligible to use the Economic Development Micro Loan Fund. <br /> <br />v. MICRO LOAN FUND TERMS & CONDITIONS <br /> <br />1. Loan Structure <br />All EDA Micro Loans will be structured as participation loans and will <br />be serviced by the project's primary lending institution. Such an <br />arrangement allows for the central distribution and collection of funds <br />and simplifies the financing process for all parties involved. A <br />participation agreement will be signed by the borrower, primary lender <br />and the EDA. <br /> <br />2. Simultaneous Micro Loans <br />The simultaneous use of different Micro Loan Fund Programs by any <br />one borrower or for anyone project is prohibited. <br /> <br />3. Call of Loan <br />A loan shall become due and payable in full if a business relocates <br />outside of the city of Elk River prior to the maturity date of the EDA <br />loan. <br /> <br />. <br /> <br />VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> <br />All buildings within which public funds will be used for construction or <br />renovation are to be brought into conformance with city codes and <br />policies. Repairs may include the following systems and portions or <br />real property: <br />a. Mechanical heating, plumbing, and electrical <br />b. Structural; including the facade of the structure and energy related <br />improvements. <br /> <br />VII. LOAN SECURITY AND GUARANTEES <br /> <br />Applicant must be able to secure the loan by providing the EDA with a <br />minimum of a subordinate mortgage upon the building and/or assets or <br />other approved collateral. <br /> <br />. <br /> <br />4 <br />