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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 Microloan 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 /> 5 EDA&City Council Approved April 17,2017 <br />