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b. Financial Feasibility - Availability of funds, private invoNement, financial <br /> packaging and cost effectiveness. <br /> <br />Appropriate ratio of private funds to Micro Loan funds. <br /> <br />· Sufficient cash flow to cover proposed debt smwice as <br /> demonstrated by financial statements and projections. <br /> <br />· Business must show a positive net worth. <br /> <br />· Letter of Cormnitment from applicant pled~oing to complete the <br /> pro)ect during proposed project duration, if the loan applicadon <br /> is approved. <br /> <br />· Letter of Commitment from other financing sources stating <br /> terms andcondidons of their participation in the project if <br /> applicable. <br /> <br />· Sufficient collateral <br /> <br />Co <br /> <br />All other information as required in the application and/or additional <br />information as may be requested by the Economic Development <br />Authority. <br /> <br />d. Project compliance with all city codes and policies. <br /> <br />Program Objectives - In addition to quality job and wage <br />creation/retention requirements, the applicant must meet all Micro Loan <br />Fund criteria and demonstrate how the proposed activities will meet at <br />least one of the following objectives: <br /> <br />The project contributes to the fulfillment of the city's approved <br />and adopted econmrfic development and/or 'redevelopment <br />plans. <br /> <br />· The project prevents or eliminates slums and blight. <br /> <br />· The project increases the local tax base. <br /> <br />· The project brings a structure into compliance with an e~stmg <br /> building code violation. <br /> <br />A written request for an extension shall be accompanied by a copy of current <br />financial statements and a $500 upfront processing fee. The processing fee is <br />used to cover processing expenses and will be returned if request is denied. The <br />application for an extension beyond the origq_nal term should include a letter of <br />denial from a conventional lender. Refinancing will not be allowed solely for the <br />purpose of reducing the interest rate due ro lower market interest rates. <br /> <br />Elk River Econotmc Development Authorit3, <br />Micro Loan Fund Policy & Guidelines <br /> <br />Page 7 of 8 <br /> <br /> <br />