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08/12/92
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08/12/92
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Meetings
Meeting Document Type
Agenda
Document Title
Economic Development Commission
Document Date
08/12/1992
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CITY <br /> <br />iOFfRAMSEY ECONOMIC DEVELOPMENT AUTHORITY (EDA) <br />,[RF~¥OLVING LOAN FUND (RLF) PROGRAM SUMMARY <br /> <br />PROGRAM! PU~IPOSE: <br />HOW IT WORKS: <br /> <br />PARTICIPAT!I~G <br />BANKS: i [ <br /> <br />MINIMUM~ <br />REQUIREMENTS: <br />WHO IS E~IGIBLE: <br /> <br />ELIGIBLE LOANS: <br /> <br />TERM: <br /> <br />To stimulate or promote business growth or development and <br />improve community impact of business districts. Also to improve <br />the tax base and employment availability. <br /> <br />Apply for a commercial loan through a participating lender by <br />completing the lender's required application forms and a RLF <br />application form furnished by the bank (50% or more of total loan <br />must be from lender). The lender will complete their normal loan <br />processing and then, if deemed approvable by the lender, will <br />transfer the loan application package to the EDA for their <br />consideration of the RLF portion of the loan. (See below <br />Application Approval section). <br /> <br />Commercial or industrial businesses located in, or relocating to, <br />the City of Ramsey. <br /> <br />Loans for machinery, fixtures, equipment, purchase of property, <br />building or site improvements. <br /> <br />Up to $ that must be matched by equal or greater <br />participating loan. <br /> <br />__% of the participating bank's index (prime) rate on RLF <br />portion and % of the participating lender's index (prime) rate <br />on participating lender portion. <br /> <br />Co-terminus with participating lender's loan, up to maximum of <br />__ years on Real Estate and five (5) years for all other purposes. <br /> <br />COLLATERAL; <br /> <br />FEES: <br /> <br />APPLICATIONS <br />ACCEPTED:[' <br /> <br />Subordinated position to participating lender on new security <br />agreements, promissory notes or mortgages. <br /> <br />RLF origination fee of 1% that is collected by the bank at the time <br />of closing. Also any recording or legal costs necessary in relation <br />to originating the RLF loan. An escrow payment will be required <br />at the time of application from which costs will be drawn. <br /> <br />Throughout the year. <br /> <br /> RLF <br />Page 1 of 7 <br /> <br /> <br />
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