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VIII. <br /> <br />IX. <br /> <br />TIMING OF PROJECT EXPENSES <br /> <br />No project should cowmaence until the Elk River Economic Development Author/t7 <br />has approved the loan application. Any costs incurred prior to the approval of the <br />loan application are generally not eli~bte expenditures. <br /> <br />No building construction should commence until the required City permits are <br />secured. <br /> <br />The apphcant will be responsible .for all legal, recording, and other fees required for <br />protection of a security interest in the loan, payable by a 1% processing fee, which is <br />paid at the time of application. <br /> <br />PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br /> <br />1. All applicants shall first contact a prirnary lending institution to deternxine if <br /> additional equi~ is needed, and if so, how much. <br /> <br />The applicant and the primary lender shall then meet with City Staff to obtain <br />infon2adon about the Micro Loan pro,am, discuss the project, and obtain <br />applicadon font, s. <br /> <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 if applicadon is denied.) The applicant <br />must provide evidence of their ability to meet the equity requirements or provide <br />a letter of commitment for conventional financing from the primary lending <br />institution. <br /> <br />The application will be reviewed by the Cit-), staff to determine if it conforms to <br /> all City policies and ordinances and to consider the following~ <br /> a. The availability and applicability of other governmental grants and/or <br /> loan programs. <br /> b. Whether the proposed~project will result in conformance with building <br /> and zoning codes. <br /> c. Whether it is desirous and in the best interests of the public to provide <br /> funding for the project. <br /> <br />The EDA Finance Corem/tree and EDA Commissioners will review each <br />application in terms of its consistency with the goals of the Growth <br />Management, Strate~c, and Economic Development Plans and in relation to the <br />project's overall impact on the commumty's economy. Redevelopment Loan <br />applications will also be reviewed by an HRA member in conjunction with the <br />lEDA Finance Committee. <br /> <br />They will also evaluate the project application in terms of the following: <br /> <br />a. Project Design - Evaluation of project desig'n will include <br /> review of proposed acti~dties, rime lines and a capaci~ to implement. <br /> <br />Elk River Economic Development Authorit3' <br />Micro Loan Fund Pokicy & Guidelines <br /> <br />Page 6 of 8 <br /> <br /> <br />