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TWO PERCENT REVOLVING LOAN FUND AGREEMENT <br />BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY <br />IN AND FOR THE CITY OF CENTERVILLE <br />AND PARTICIPATING BANKS <br /> <br /> THIS AGREEMENT, entered into this ______ day of _______________, 20___ <br />by and between <br />THE ECONOMIC DEVELOPMENT AUTHORITY <br />IN AND FOR THE CITY OF CENTERVILLE <br />(hereinafter referred to as the ÐAuthorityÑ) <br />And <br /> <br />____________________________________________________ <br />(hereinafter referred to as the ÐBankÑ) <br /> <br /> WHEREAS, the Authority has established a Two Percent Revolving Loan Fund (2% RLF) <br />for the purpose of making loans to neighborhood small business firms; and <br /> <br /> WHEREAS, the establishment of the 2% RLF requires that loan monies advanced from the <br />2% RLF be matched by an equal amount from a local bank; <br /> <br /> NOW THEREFORE, in consideration of the above premises, the parties hereto agree as <br />follows: <br />1. That the document dated June, 2019, entitled ÐRevolving Loan and Grant Program <br />Guidelines and Regulations Handbook,Ñ which has been given to the bank as part of the <br />revolving loan/grant program document, governs this Agreement. <br />2. That the Bank in conjunction with the Authority will make eligible loans for rehabilitation <br />at a ratio of 1:1, not to exceed a program maximum limit of $40,000. Any additional loan <br />monies exceeding the program maximum limit shall not be the responsibility of the <br />Authority. <br />3. That, for each loan made, half the funds will come out of the 2% RLF, up to a maximum of <br />$20,000, and at least half the funds will be made available by the Bank. <br />4. That interest will be computed in the following manner: At the annual rate of two percent <br />on the AuthorityÓs portion and no more than three percent above prime rate for the monies <br />loaned from the Bank. <br />5. That the term of the loan shall not exceed 10 years. The Bank shall make the determination <br />of the appropriate term. <br />6. That prior to approving or rejecting a loan request, the Bank shall process the request in the <br />same manner as any other commercial improvement loan request. <br />7. That the Bank shall then approve or reject the loan based on the program requirements, <br />provided that no application can be rejected for any unlawful reason; provided further that <br />the Authority shall not have the authority to approve or reject a loan on behalf of the Bank. <br />13 <br />18 <br /> <br />