2018-12-05 EDA Packet (3) - Laserfiche WebLink

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TWO PERCENT REVOLVING LOAN FUND AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF WHITE BEAR LAKE AND PARTICIPATING BANKS THIS AGREEMENT, entered into this day of 20 by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF WHITE BEAR LAKE (hereinafter referred to as the"Authority") And (hereinafter referred to as the "Bank") WHEREAS, the Authority has established a Two Percent Revolving Loan Fund (2% RLF) for the purpose of making loans to neighborhood small business firms; and WHEREAS, the establishment of the 2% RLF requires that loan monies advanced from the 2% RLF be matched by an equal amount from a local bank; NOW THEREFORE, in consideration of the above premises, the parties hereto agree as follows: 1. That the document dated May 2012, entitled "Revolving Loan and Grant Program Guidelines and Regulations Handbook," which has been given to the bank as part of the revolving loan/grant program document, governs this Agreement. 2. That the Bank in conjunction with the Authority will make eligible loans for rehabilitation at a ratio of 1:1, not to exceed a program maximum limit of$80,000. Any additional loan monies exceeding the program maximum limit shall not be the responsibility of the Authority. 3. That, for each loan made, half the funds will come out of the 2% RLF, up to a maximum of $40,000, and at least half the funds will be made available by the Bank. 4. That interest will be computed in the following manner: At the annual rate of two percent on the Authority's portion and no more than three percent above prime rate for the monies loaned from the Bank. 5. That the term of the loan shall not exceed 10 years. The Bank shall make the determination of the appropriate term. 6. That prior to approving or rejecting a loan request, the Bank shall process the request in the same manner as any other commercial improvement loan request. 18