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Equity: Must have a minimum of 10%equity provided by the borrower. <br /> Rate: Fixed at 3% <br /> Term: The maximum maturity date of the loan will be determined by the <br /> useful life of the improvement and the energy payback achieved as <br /> determined by ERMU. <br /> For projects that have a shorter length of payback(2-5)years as <br /> calculated according to energy savings,the loans will have an initial <br /> maturity of up to 5 years from the date of closing. <br /> Longer life improvements(6-15 years)may apply for a longer <br /> maturity of up to 10 years. <br /> Criteria: Microloan funds shall be spent on energy efficiency improvements <br /> outlined below or related building improvement costs <br /> Applicant must agree to energy audits conducted under the utility <br /> company's Conservation Improvement Program(CIP). If warranted, <br /> engineering studies then are performed on facilities with conservation <br /> opportunities under the utility company's CIP Program. <br /> Energy efficiency is defined as improvements that are rebatable by <br /> the Elk River Municipal Utilities(ERMU)or the utility provider for <br /> the property if not ERMU.Proposed energy efficiency improvements <br /> that do not qualify for the utility's prescriptive rebate program will be <br /> reviewed and approved by the utility company servicing the upgrade <br /> measures(e.g.Elk River Municipal Utilities,Connexus,CenterPoint) <br /> along with a letter indicating eligible utility rebates. <br /> Utility rebates as applicable will be assigned to the Elk River EDA <br /> and applied toward principal repayment of the loan. <br /> An Elk River Energy City Commission member will be asked to <br /> participate in the EDA Finance Committee review. <br /> The loans will be secured by personal and corporate guarantees,and <br /> if applicable alien on equipment financed and subordinate mortgage <br /> on the property. <br /> Installation must be certified through a licensed contractor and <br /> electrician.New construction is eligible when participating with a <br /> utility company rebate program. Eligible costs shall include only <br /> incremental costs over industry design standards. <br /> Permitted Fund Uses: <br /> rorEeEo er <br /> Page 9 of 23 EDA&City Council Approved August 21,2017 AWR <br />