2021-01-27 CC Packet - Laserfiche WebLink

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Referral of applicants to local banks. Participation agreements with local banks. Financial institutions are responsible for: Receipt and processing of loan applications. Provision of matching loan funds at least equa RLGP. credit risk and required collateral. Determining loan amortization period. Approval or disapproval of loan subject to City certification as to program eligibility. Collection of lien waivers and other documents deemed necessary for loan disbursements. Distribution of loan funds subject to final approval by the CVEDA. Distribution of principal and interest payments to the CVEDA RLGP. On default, the claims of the CVEDA are subordinate to the financial institution. II. PROGRAM OBJECTIVE The purpose of the RLGP is to provide businesses with an incentive to increase their investment in the community by making structural and beautification improvements to existing buildings. The RLGP will not provide working capital loans nor fund operating expenses. III. PHYSICAL BOUNDARIES OF PROGRAM AREA To be eligible for the RLGP, the property must be located within the City limits. IV. PROGRAM ADMINISTRATION AND STRUCTURE Administration will be shared by the EDA and participating financial institutions. ll maintain and update program guidelines and monitor their compliance. Director and Assistant Treasurer. Servicing of RLGP loans shall be administered by local banks and savings and loans which make application to the EDA. All such institutions must be within 15 miles of the corporate limits of the City. The RLGP will operate as a public/private sector partnership. The financial base of $50,000 for the public share of RLGP funds will come from Housing and Redevelopment Authority funds, administered by Anoka County on behalf of the City. The fund will be replenished by an annual contribution of $10,000 from HRA income and any interest and principal repayments resulting from outstanding loans. 3