Laserfiche WebLink
<br />c. :J\faclllnery <br />d. Furniture, fi~tures, and equipment (FF&E) <br />e. Renovation and modetmzation of buildings <br />f. Extetlor renovation of retail, commercial and industrial buildings <br />g. Public infrastructure needed for economic development expansions <br />11. Investment real estate \vith a minimum of 500/0 of the space pre-leased <br /> <br />2. Ineligible Fund Uses: <br />a. Expenditures for tlle consuuction and/or renovation of residential units <br />b. \V orking capital <br />c. Refinancing of existing debt <br />d. Inventory <br /> <br />IV. BUSINESSES ELIGIBILITY <br /> <br />.tilly project meeting tlle above criteria, and located or proposed to be located \vithin <br />t11e city limits of Elk River as defined by tlus program, may be eligible for an <br />Economic De"velopment ]\'llcro Loan as further defmed herein: <br />. Business must be a for-profit corporation, partnerslup, or sole <br />proptletors1up. <br />. Business must be a slllall business as defined by tile Small Business <br />[\.dministration (SB.L\). <br />. Business must l1ave a positi\Te net \vorth. <br />. Religious, political, and pornographic enterprises are not eligible to use <br />the Economic Development :J\'Iicro Loan Fnnd. <br /> <br />V.MICRO LOAN FUND TERMS & CONDITIONS <br /> <br />1. Loan Structure <br />.L\ll ED.L\ Ivucro Loans \\.rill be structured as participation loans and \v-ill be serviced by <br />tlle project's primary lending institution. Such an arrangement allo\vs for the central <br />distribution and collection of funds and simplifies the financing process for all <br />parties involved. i\. participation agreement \v.ill be signed by t11e borro\ver, primary <br />lender and the ED.L~. TIle agreement \vill include tlle follo~ving provisions, among <br />others: <br />. If Borro\ver does not meet t11e job and \vage goals specified in t11e Subsidy <br />.L"1..greement, the interest rate ,vill change to 2 points abo\Te tlle participating <br />bank's rate, effective from tile t\vo year anni'versary of tlle loan closing. <br />Upon subsequent acrue,Tement of tlle jobs and \vage goals, tlle interest rate <br />\vill revert back to the rate \Vllen tile loan ~vas originated, effective from the <br />date of attainment of tlle job and \vage goals. <br /> <br />. If Borro\ver defaults on tlle loan, tlle EDI\ ~v.ill collect all furtller payments <br />during the default based on a pro-rata basis \Vitll tlle participating bank <br />excluding the distribution of proceeds resulting from tlle foreclosure on <br />colla teral. <br /> <br />Elk River Economic Development .A.uthority <br />J\Iicro Loan Fund Policy & Guidelines <br />Revised June 2004 <br /> <br />Page 4 oE8 <br />