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David Hartley or Anne Norris; Mr. Hartley or Ms. Norris, a representative <br />from the prospective business and the referring person will meet; progress <br />will continue from that point. <br /> <br />Company consensus was to adopt the draft policy established for economic <br />development prospects. <br /> <br />C_~ Review Proposed Policy And Guidelines For Revolvin~ Loan Fund <br /> For Economic Development Activities With CDBG Funds: <br /> <br />Discussion ensued regarding whether or not the Company should qualify <br />applications based on need or offer assistance to all. <br /> <br />The Company proceeded to review and amend the Revolving Loan Fund Policy <br />and Guidelines. <br /> <br />Motion by Mr. Greenberg and seconded by Mr. DeLuca to approve the proposed <br />Economic Development Revolving Loan Fund Policy and Guidelines with the <br />following amendments: <br /> <br />Guidelines - <br /> <br />Page 1 - "Loan Practices" - This paragraph should reflect that the <br />Company can approve loans based on proposed, rather than approved, <br />financing plans. <br /> <br />Page 1 - "Credit Requirements" - This paragraph should also reflect <br />that the Company can approve loans based on proposed, rather than <br />approved, financing plans. <br /> <br />Page 2 - "Insurance" - 2nd paragraph - first line - delete the word <br />'to'. <br /> <br />Page 2 - "Disbursement Of Loan Proceeds" - Shall read as follows: <br />'The loan proceeds will be released to the business upon completion <br />of the project or upon presentation of the approved receipts/lien <br />waivers for completed expenses.' <br /> <br />Further Discussion: Mr. DeLuca inquired if the Loan Fund Policy will offer <br />assistance to all who request or will applications be qualified based on <br />need. <br />Further Discussion: Mr. DeLuca inquired if the Loan Fund Policy will offer <br />assistance to even those projects that are financially well off and do not <br />need the Company's assistance or force them to get the balance of what they <br />need from a lending institution. Mr. Fults stated that in order to be <br />fair, the Company should at least review all applications. Mr. Greenberg <br />stated that he understood the intent of the revolving loan fund was to <br />assist marginal businesses get established. Mr. Hardin stated that before <br />limiting assistance to marginal businesses, consideration should be given <br />to what the Company's reaction would be to an application from a <br />financially well off project that would create a lot of employment with <br />guaranteed payback to the loan fund. Company consensus was that a <br />statement should be added to the Loan Fund Policy that would indicate that <br />because funds are limited, all loan applications will be reviewed but the <br />Loan Committee will grant approval to those projects it deems the most <br />Economic Development Company/12-4-86 <br /> <br />Page 3 of 4 <br /> <br /> <br />