05-11-2004 Council Agenda - Laserfiche WebLink

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7. BUSINESS REVOLVING LOAN FUND REVIEW COMMITTEE (BRLF REVIEW COMMITTEE) The EDA will appoint the Review Committee, which shall be composed of the Treasurer of the EDA, one member of the Little Canada City Council, and three (3) at -large members who are either residents or business persons in the City of Little Canada; ideally with financial expertise. Loan applications, which have obtained preliminary approval from participating lenders, shall be forwarded to the Review Committee for its comments on eligibility for BRLF participation. In considering whether to recommend approval of an application or which application to give priority, in addition to all other criteria of this Plan, the Review Group may consider: (1) the date of the application; (2) the nature and extent of improvements leveraged by the loan fund; (3) the extent of rehabilitation; (4) the proposed use of existing vacant structure; and /or (5) the extent of new or expanded business and required job opportunities resulting from the proposed improvements. Within 15 days of receiving such application, the Review Committee shall forward its comments along with the application to the EDA Board of Commissioners for final approval. 8. APPROVAL BY EDA The EDA Board of Commissioners shall consider each application at its regularly scheduled (or special) meeting immediately following receipt of the application from the Review Group. The EDA Board of Commissioners shall approve the application for BRLF participation or reject such participation, stating the reasons why. The EDA retains full discretion as the approval or denial of any application. Such rejection shall not preclude resubmission of the application with appropriate modifications. At the time of any application's approval by the EDA Board of Commissioners, an appropriate amount of money in the BRLF shall be reserved to cover the BRLF's anticipated participation in the loan or the EDA shall indicate the insufficient funds for such participation then exist, in which case the application shall be placed on a waiting list until such time as funds become available or the application is withdrawn. The EDA shall communicate its actions promptly to the participating lender. At the time prior to closing on a loan, the participating lender may disapprove an application, which had obtained preliminary approval, based upon changed circumstances or for any other reasonable cause. 9. PAYMENT OF LOAN PROCEEDS Loan proceeds shall be paid to the participating lender and loan recipient. All invoices and other necessary documentation as related to the project costs shall be provided to the EDA prior to the disbursement of funds. BRLF loan recipients must close on the loan within 30 days of final approval by the EDA Board of Commissioners. If not closed within the 30 -day period, the EDA reserves the right to cancel its commitment of funds and use those funds for another BRLF loan. Only those funds lent for the loan recipients project, activity or use stated in the applicant's loan application, may be collected by the lender prior to collection of the EDA's share of the total Loan. 6