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ELK RIVER EDA <br />C®MMERCIAL ~ INDUSTRIAL BUILDING ENERGY EFFICIENCY <br />REVOLVING LOAN PR®GRAM <br />PROPOSED LOAN STRUCTURE AND TERMS <br />Eligible Applicants and Activities: <br />As established by OES under the Energy Programs in Commercial and Industrial Buildings-ARRA <br />~attached~ <br />Haan Amounts: <br />Applicants may apply far the cost of improvements with a minimum loan amount of $10,000 and a <br />maximum loan of $100,000 per project. Project loans exceeding $100,000 may be considered on a case <br />by case basis. <br />Interest Rates: <br />Loans will be provided interest-free. <br />Equity Reguire_men~s; <br />Loan app icants must demonstrate an acceptable level of project equity, with a minimum of 10% equity <br />provided bythe borrower, <br />Fees and C11ar~es: <br />A 1% loan origination fee will be charged to all borrowers and payable at the time of closing. The fee <br />will be used to cover processing of applications credit review and legal. <br />Loan Maturity: <br />The maximum maturity date forthe improvement loans will be determined by the useful life of the <br />improvement and the energy payback achieved. For projects that have a shorter length of payback ~2-5~ <br />years as calculated according to energy savings, the loans will have an initial maturity of up to 5 years <br />from the date of closing. Longer life improvements ~5-15 years} may apply for a longer maturity of up to <br />10 years. <br />Credit standards and risk management factors <br />Applicants must demonstrate credit worthiness and repayment ability. The loans will be made from the <br />EII~ River EDA and secured by personal and corporate guarantees, and if applicable a lien on equipment <br />financed. installation must be certified through a licensed contractor and electrician. Installation <br />certificates and project inspection reports will be required in addition to compliance with Davis-Bacon <br />requirements. <br />Repayrnent: <br />Monthly installment payments will be made to the Ellc River EDA according to the amortization schedule <br />approved as part of the loan. Loan repayments will be returned to the revolving loan fund as available <br />loan funds. Utility rebates, as applicable, will be assigned to the Ellc River EDA and applied toward <br />principal repayment of the loan. <br />