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VI. <br /> <br />3. Call of Loan <br />A loan shall become due and payable in full if a business relocates outside of the city <br />of Elk River prior to the maturity date of the EDA loan. <br /> <br />REGULATION FOR NEW CONSTRUCTION AND IMPROVEMENTS <br /> <br />All buildings within -,vkich public funds will be used for consr_t-uction or renovation <br />are to be brought into conformance with city codes and policies. Rep"UZs may <br />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 /> m2provements. <br /> <br />VIi. <br /> <br />LOAN SECURITY AND GUARANTEES . <br /> <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 /> <br />Applicant must demonstrate the financial means to repay d~e loans, as determined by <br />the Economic Development Authority. <br /> <br />Whenever possible, personal guarantees ~viil be made part of any loan agreement. <br /> <br />Viii. <br /> <br />TIMING OF PROJECT EXPENSES <br /> <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 applicati%n are generally not eligible expenditures. <br /> <br />No building construction should commence until the required City permits are <br />secured. <br /> <br />The applicant will be responsible for all legal, recording, and other fees required for <br />protection of a security interest in the loan. <br /> <br />IX. PROCEDURAL GUIDELINES FOR APPLICATION AND APPROVAL <br /> <br />1. Ail applicants shall first contact a primary lending institution to detenZUZe if <br /> additional equity is needed, and if so, how much. <br /> <br />.. <br /> <br />The applicant and the pzirnary lender shall then meet with City Staff to obtam <br />information about the Micro Loan program, discuss the project, and ohom <br />application forms. <br /> <br />The applicant shall complete and submit an application form to the City, along <br />"V~th a processing fee of 1% of the loan request. (The fee is used to cover <br />processing expenses and will be returned if application is demed.) The applicant <br />must provide evidence of their ability to meet the equity reqm-rements or provide <br />a letter of commttment for conventional financing from the primary lending <br />institution. <br /> <br />Elk River gconormc Development Authority <br />Niicro Loan Fund Policy & Gmdelmes <br /> <br />Page 5 of 8 <br /> <br /> <br />