05-11-2004 Council Agenda - Laserfiche WebLink

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LITTLE CANADA ECONOMIC DEVELOPMENT AUTHORITY (EDA) BUSINESS REVOLVING LOAN PROGRAM GUIDELINES April 2004 The purpose of the fund is to provide financial assistance to retail and service establishments through joint private sector and public action. The Little Canada Economic Development Authority (EDA) has established a City -wide, low interest, loan program for the following purposes: • To improve the capability and incentive for owners and tenants to upgrade the appearance, structural condition and operating efficiency of their place of business. • To help businesses improve their market and service of their business to the community. • To retain and expand job opportunities for Little Canada residents. • To encourage utilization of vacant and underutilized commercial buildings /sites. The Little Canada Economic Development Authority (EDA) in reviewing applications, will also consider the following: • The date of the application. • The extent of the improvements leveraged by revolving loan funds. • The extent of new or expanded business and job opportunities. • The extent of rehabilitation and use of existing vacant structures. • The availability of funds. How the Program Works Borrower prepares a loan request to cover the cost of commercial property rehabilitation/renovation. Borrower applies to a private lender and the Little Canada Economic Development Authority (EDA). If approved by both, the lender provides financing for their part of the project cost at their market rate and the Little Canada Economic Development Authority provides up to $25,000 per loan at 2% interest. The amount of the Little Canada Economic Development Authority loan must be matched or exceeded by a participating lender. Borrowers must make application to the Little Canada Economic Development Authority with a lender - commitment letter before any work is started. Term on the loan is up to ten (10) years and is set by the private lender based on the borrower's ability to pay, the use of the funds, lender's current practices. The private lender also takes primary responsibility for the credit analysis and underwriting. 8