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<br />2. The applicant and the primary lender shall tllen meet \vitll City Staff to obtain <br />information about the 1.ficro Loan program, discuss the project, and obtain <br />application forms. <br /> <br />3. TIle applicant sllall complete and submit an application form to the City, along <br />\vith a processing fee of 1 % of the loan request. (TIle fee is used to cover <br />processing expenses and will be returned if application is denied.) Tile applicant <br />must pro\ride evidence of their ability to meet the equity requirements or provide <br />a letter of commitment for con.~lentional financing from the primary lending <br />institution. <br /> <br />4. The application \vill be re,rie\ved by the City staff to determine if it conforms to <br />all City policies and ordinances and to consider the follo\ving: <br />a. TIle availability and applicability of otller governmental grants and/or <br />loan programs. <br />b. \'\!11ether the proposed project \vill result in conformance \Vitll building <br />and zoning codes. <br />c. \Xl1lether it is desirous and in tlle best interests of tlle public to pro\ride <br />funding for the project. <br /> <br />5. The ED~\ Finance Committee and ED.i\ Commissioners \vill revie\v each <br />application in terms of its consistency \~vith tlle goals of tlle Gro\vth <br />1.fanagement, Strategic, and Economic Development Plans and in relation to tlle <br />project's overall impact on tlle community's economy. Rede\relopment Loan <br />applications \vill also be revie\\red by an HRr\. member in conjunction \vith tlle <br />ED.L\ Finance Committee. <br /> <br />They \vill also evaluate tlle project application in telms of tlle follo\ving: <br /> <br />a. Project Design - E\raluation of project design \vill include <br />re,rie\v of proposed activities, time lines and a capacity to implement. <br /> <br />b. Financial Feasibility - .L\vailability of funds, private involvement, financial <br />packaging and cost effectiveness. <br /> <br />. .L\ppropriate ratio of private funds to 1ficro Loan funds. <br /> <br />. Sufficient casll flo\v~ to cover proposed debt service as <br />demonstrated by financial statements and projections. <br /> <br />. Business must s110\v a positive net \v~orth. <br /> <br />. Letter of Commitment from applicant pledging to complete tlle <br />project during proposed project duration, if tlle loan application <br />is approved. <br /> <br />Elk River Economic Development ..:'-\uthority <br />1Iicro Loan Fund Policy & Guidelines <br />Re'vised June 2004 <br /> <br />Page 6 of8 <br />