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<br />The ED~\ may require additional agreements to be signed by the borro"\ver (i.e. <br />security agreement, personal guarantees, job performance agreement). <br /> <br />2. Simultaneous Micro Loans <br />The simultaneous use of different 1\rficro Loan Fnnd Programs by anyone borro\ver <br />or for anyone project is prolubited. <br /> <br />3. Call of Loan <br />.L\ loan s11all become due and payable in full if a business relocates outside of the city <br />of Elk Ri\Ter prior to tlle maturity date of the ED..c\ loan. <br /> <br />4. Late Payment Charge <br />..:\ late payment charge of up to 80/0 of the installment amount may be enforced. <br /> <br />VI. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> <br />..:\11 buildings \vhicll public funds \vW be used for consuuction or renovation are to <br />be brougllt into conformance \vith city codes and policies. Repairs may include tlle <br />follo\ving systems and portions of real property: <br />a. 1\.Jecllanicallleating, plumbing, and electrical <br />b. Structural; including tlle facade of the structure and energy related <br />imprO\lements. <br />c. Hook-up to city services (i.e. \v.ater, se\ver) <br /> <br />VII. LOAN SECURITY AND GUARANTEES <br /> <br />.L\pplicant must be able to secure tlle loan by pro\riding the ED.l\ \\ritll a minimum of <br />a subordinate mortgage upon tlle building and/ or assets or otller approved collateral. <br /> <br />.L\pplicant must demonstrate the financial means to repay the loans, as determined by <br />tlle Economic De,relopment .L\utllOrity. <br /> <br />Wllene,rer possible, personal guarantees \vill be made part of any loan agreement. <br /> <br />VIII. TIMING OF PROJECT EXPENSES <br /> <br />No project sllould commence until tlle Elk River Economic Development .L\uthority <br />11as approved the loan application. .L\ny costs incurred prior to tlle appro"val of tlle <br />loan application are generally not eligible expenditures. <br /> <br />No building construction sllould commence until tlle required City permits are <br />secured. <br /> <br />TIle applicant \vill be responsible for all legal, recording, and otller fees required for <br />protection of a security interest in the loan, payable by a 1 0/0 processing fee, \,duch is <br />paid at tile time of application. <br /> <br />IX. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br /> <br />1. ..:\11 applicants slla11 first contact a primary lending institution to determine if <br />additional equity is needed, and if so, ho\v. much. <br /> <br />Elk River Economic Development .;;\uthority <br />l\ficro Loan Fund Policy & Guidelines <br />Revised June 2004 Page 5 of 8 <br />