05-11-2004 Council Agenda - Laserfiche WebLink

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PLAN FOR BUSINESS REVOLVING LOAN FUND (BRLF) OF THE ECONOMIC DEVELOPMENT AUTHORITY (EDA) FOR THE CITY OF LITTLE CANADA, MINNESOTA April 2004 1. PURPOSE The Plan provides for the use of funds for a Business Revolving Loan Fund (BRLF). The purpose of the Business Revolving Loan Fund (BRLF) is to provide a low interest loan program that will provide the capability and incentive for commercial businesses to meet the BRLF program goats. The BRLF goals are to assist in the economic development of the community by creating employment opportunities for Little Canada residents to encourage utilization of vacant or underutilized commercial /industrial sites /buildings; to encourage businesses to upgrade their buildings /site improvements to enhance community appearance, and to help businesses to improve the market and service of their business to the community. These loans would be made pursuant to the powers granted in Minnesota Statutes, Sec. 469.012, Subd. (2), (12) and (24). The BRLF is contingent upon participation by one or more FDIC insured lenders, which agree to the teams of the Plan and provide at least fifty percent (50 %) of the loan needs to borrowers. 2. PROGRAM DURATION Loans may be made under this Plan to the extent that funds are available, as allocated to the fund by the City and /or EDA, so long as there are lenders participating and eligible loan recipients, unless the BRLF is terminated, upon written notice to all participating lenders of the EDA's intention to terminate the BRLF. If the BRLF is so terminated, such termination shall not affect the rights and obligations of the participating lenders nor those of the EDA with respect to loans outstanding on the effective date of such termination. To become a participating lender, an FDIC insured, financial institution, needs only provide a letter to the EDA of its agreement to the terms of this Plan. A participating lender may withdraw from the program at anytime, with respect to future loans, by giving written notice to the EDA of its intent to withdraw. 3. CRITERIA A. Eligibility Businesses receiving loans through this program must: • Immediately repay the loan in full in the event that the borrower moves his /her business out of the City of Little Canada. • Be a for - profit corporation, partnership, or sole proprietorship, tenant operator or contract for deed purchaser. • Be a "small business" as defined in the regulations of the United States Small Business Administration or lease space to said small businesses. • Have ability to repay the loan and be an acceptable credit risk as determined by a bank. 2