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A late payment charge of 8% of the installment amount may be enforced. <br />V1. REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br />All buildings which public funds will be used for construction or renovation are to <br />be brought into conformance with city ordinances and state building codes. Repairs <br />may include the following systems and portions of real property: <br />a. Mechanical heating, plumbing, and electrical <br />b. Structural; including the facade of the structure and energy related <br />improvements. <br />c. Hook-up to city services (i.e. water, sewer) <br />d. ADA (Americans with Disabilities Act) improvements <br />VII. LOAN SECURITY AND GUARANTEES <br />Applicant must be able to secure the loan by providing the EDA with a minimum of <br />a subordinate mortgage upon the building and/or assets or other approved collateral. <br />Applicant must demonstrate the financial means to repay the loans, as determined by <br />the Economic Development Authority. <br />Whenever possible, personal guarantees will be made part of any loan agreement. <br />VIII. TIMING OF PROJECT EXPENSES <br />No project should commence until the Elk River Economic Development Authority <br />has approved the loan application. Any costs incurred prior to the approval of the <br />loan application are generally not eligible expenditures. <br />No building construction should commence until the required City permits are <br />secured. <br />The applicant will be responsible for all legal, recording, and other fees required for <br />protection of a security interest in the loan, payable by anon-refundable 1% <br />processing fee, which is paid at the time of application. <br />IX. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br />1. All applicants shall first contact a primary lending institution to determine if <br />additional equity is needed, and if so, how much. <br />2. The applicant and the primary lender shall then meet with City Staff to obtain <br />information about the Micro Loan program, discuss the project, and obtain <br />application forms. <br />The applicant shall complete and submit an application form to the City, along <br />with a processing fee of 1% of the loan request. (The fee is used to cover <br />processing expenses and will be returned only if application is denied.) The <br />applicant must provide evidence of their ability to meet the equity requirements <br />or provide a letter of commitment for conventional financing from the primary <br />lending institution. <br />Micro Loan Fund Policy & Guidelines Page 6 of 14 <br />Amended December 2006 <br />