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3 | Page <br /> <br /> <br />Payment: Loan is deferred for 6 months upon approval of the loan agreement. <br /> <br />Forgivable: Up to $5,000 is eligible for forgiveness for property tax relief for taxes payable in 2020. <br />Lease or ownership documentation is required. Forgiveness for property tax relief will be granted if <br />the Borrower has met the reporting requirements listed below. <br /> <br />Extension: In the event the Borrower is unable to obtain conventional financing to replace the <br />Microloan at the end of five years, the loan may be extended up to two additional years at a market <br />rate of interest. <br /> <br />Collateral: Loans must be supported by sufficient collateral, which will include personal guarantees <br />and/or corporate guarantees. <br /> <br />Supporting Documentation: <br />1. Proof of ownership or signed lease. <br />2. Proof of submittal, acceptance, approval and/or denial of SBA and DEED loan <br />applications (not absolutely required) <br />3. Copy of page from business’s most recent federal tax return indicating gross receipts or <br />sales <br />4. A W-9 form (with signature) <br />5. Other supporting documentation you wish to provide to the EDA to assist in <br />understanding the applicant’s situation. <br />6. Narrative descriptions and estimated calculations of the negative impacts on the business <br />due to COVID-19 <br />7. Description of costs to be paid with the proceeds of the loan <br />8. Narrative description of the plans for resuming operations following the COVID-19 <br />crisis <br /> <br />Permitted Fund Uses: <br />Awarded funds may be used exclusively for current payroll obligations (may not include employees <br />who have been laid off), lease or mortgage payments, utilities, accounts payable, property taxes and <br />other critical business expenses that can’t be paid as a direct result of the COVID-19 pandemic. <br />Awarded funds may not be used for business owner’s/manager’s personal uses or expenses. <br /> <br />Ineligible Fund Uses: <br />Assistance cannot be provided to businesses or nonprofits that: <br />1. Do not have a physical business address within the City of Elk River <br />2. Are home-based businesses <br />3. Derive income from passive investments without operational ties to operating businesses <br />4. Primarily generate income from gambling activities <br />5. Generate any part of its income from adult-oriented or tobacco/vaping-related activities <br />6. Have no current or historical financial statements <br />7. Previously received emergency funds from the EDA <br /> <br /> <br />Fund Availability: