HomeMy WebLinkAbout01-114 Resolution No. 01-114
RESOLUTION
ADOPTING THE CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
FOR BUSINESS DEVELOPMENT AND BUILDING IMPROVEMENTS
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that it hereby adopts the Center City Special Business
Loan Program for Business Development and Building Improvements
dated April 1, 2001 for building improvements and business
development in Center City Elgin, a copy of which is attached.
s/ Ed Schock
Ed Schock, Mayor
Presented: April 25 , 2001
Adopted: April 25, 2001
Omnibus Vote : Yeas 5 Nays : 0
Attest :
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
April 1, 2001
CITY OF ELGIN
Center City Special Business Loan Program
for Business Development and Building Improvements
PURPOSE STATEMENT:
The City of Elgin and the Elgin financial institutions have
established a special loan program for building improvements and
business development in Center City Elgin in an effort to stimulate
expansion, reinvestment and business retention.
LOAN TERMS:
Interest Rate : 6% paid by borrower.
Term of Loan: Up to a 10 year amortization.
Collateral : First or Second mortgage on
property.
Maximum Loan: Up to $150 , 000 per building
project .
Purpose of Loan: Loan proceeds must be used for
business development and
expansion * , building
improvements (interior &
exterior) .
City of Elgin pays additional
interest to Lender monthly in
the amount of the difference
between the actual interest
rate in the approved loan
agreement less six (6%) to be
paid by the Borrower. The
maximum or ceiling for an
interest rate in an approved
loan agreement is fifteen per-
cent (15%) per year.
Monthly Payment : Separate bills sent to borrower
(for principal payment plus 6%
interest) and to City (for
additional interest between 6%
and 15% .
* Expansion is defined as the addition of multiple employees,
and/or the occupancy of additional office, manufacturing,
retail or storage space in order to enhance a new or existing
business .
ELIGIBILITY REQUIREMENTS:QU MENTS:
To be eligible to apply for this special loan program, the applying
business must satisfy both of the following criteria :
1 . Geographic : The business must be located in Center City
Elgin, in the areas outlined in Appendix A.
2 . Type of Business : The business must be engaged in
retailing, wholesaling, distribution, professional
services, technology industry and other types of general
commercial and retail lines of business consistent with
those business uses identified as desirable in the
adopted Riverfront/Center City Master Plan.
GENERAL REQUIREMENTS:
1 . Loan proceeds must be used strictly for business
development, expansion and/or for building improvements .
This program does not include financing for furniture or
standard office equipment (i . e . personal computers and
related equipment) .
2 . Building improvements must be done by an independent
contractor. Agreement with contractor must be supported
by
two different contractor bids .
3 . Any business which is approved and is to receive benefits
under this Center City Special Business Loan Program must
execute a written agreement with the City in a form as
directed by the City which shall include the terms
necessary to comply with the provisions of the program
requirements and which shall include an agreement by such
business to complete building improvements within a
specified time period and to thereafter remain in
business at the specified location for a period of not
less that three years . If the business is required to
vacate the Center City location due to action directed or
supported by the City, the business must relocate within
the Center City in order to retain the benefits of the
Business Loan Program.
QUALIFYING STANDARDS:
1 . Applicant business and owner must have an acceptable
credit history with a record of timely loan payments .
2 . Business profits and cash flow must be sufficient to
support loan payments in accordance with the customary
loan (with the loan to value ratio not to exceed 75% to
80%) unless other collateral or financial strength is
provided.
APPLICATION PROCESS:
1 . Eligible businesses should complete the loan program
application form and submit it to the bank, savings and
loan official , or other pre-approved lending program.
2 . Once the loan is conditionally approved and structured by
the lending institution, the lender shall complete a loan
proposal for submission to the City of Elgin for final
approval .
3 . Approval by the City of Elgin will be conditioned upon
(1) available funds, (2) compatibility with Center City
development plans, (3) adherence to the objectives and
regulations of the program and (4) entry into a program
agreement with the City in the form as directed by the
City.
4 . The lending institution and business applicant may elect
to proceed with a conventional market rate loan in the
event that the City of Elgin denies the special loan
program application.
SUPPLEMENTAL LOAN AMOUNTS :
If a lending institution approves subsequent increases in the
original loan amount approved for a project under this program,
application can be made for an interest subsidy on the increment .
Provision of the subsidy is subject to approval by the City of
Elgin. The City of Elgin is under no obligation to provide benefit
beyond that previously approved.
ADDITIONAL TERMS AND CONDITIONS:
1 . The interest rate ceiling shall be 15%, at which point
the City will be paying 9% and the borrower 6% .
2 . The City shall make monthly interest payments so long as
the borrower continues to make the regular scheduled loan
payments and otherwise complies with the terms of the
agreement to be entered into between the City and the
borrower. If the borrower fails to pay all required loan
payments or otherwise fails to comply with the terms of
the agreement to be entered into with the City, the City
will cease paying.
NO VESTED RIGHTS:
The provisions of this program are intended to provide guidelines
for considering applications for businesses that are seeking to
participate in the Center City Special Business Loan Program. The
City Council of the City of Elgin, in its sole and exclusive
discretion, shall determine whether to provide any of the
incentives contemplated in this program after duly considering the
costs incurred by the City of Elgin for providing the incentives
and after considering the relative gain derived by the public from
those incentives . The City Council of the City of Elgin further
expressly reserves the right and option to decide at any time
whether or not to provide continued or additional funding for this
program.
The creation or existence of this program shall not be construed to
create or provide any vested rights in any person or organization
to obtain approval of a program application, a program agreement or
any incentive, grant, rebates or funding thereunder.
APPLICATION FOR
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date :
Loan Amount Requested: $ Total Project Cost : $
Company Name :
Address :
Phone :
Owner' s Name (s) :
Type of Business :
Purpose of Loan:
Does this loan represent an addition to a loan previously approved
for this project? YES NO
If yes, please indicate original amount, date approved and total
loan amount with proposed increment .
Original loan approved: $
Date Approved:
Total loan with proposed increment : $
BREAKDOWN OF PROJECT
AMOUNT CONTRACTOR DESCRIPTION OF WORK
1 . $
2 . $
3 . $
4 . $
OTHER CONTRACTOR BIDS OBTAINED
DESCRIPTION OF PROPERTY:
(Size & Description)
APPRAISED VALUE:
OWNER IN TITLE:
EXISTING MORTGAGE
ON PROPERTY:
OTHER INFORMATION REQUIRED INITIALLY:
1 . Business Year end Financial Statements - last two years.
2 . Business Interim Financial Statement - current year-to-date.
3 . Personal Financial Statement - current.
4 . Copy of Contractor Estimates .
5 . Corporate and/or Personal Tax Returns may be required.
6 . Appraisal of property may be required.
The undersigned applicant hereby certifies that the loan funds
obtained shall be used for the purposes outlined in this
application.
DATE
Applicant Business
BY:
Owner
Please deliver this completed application to the bank or savings
and loan official of your choice . They will process your credit
application and submit a loan proposal to the City of Elgin for
final approval .
Revised 03-19-01
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April 1, 2001
CITY OF ELGIN
Center City Special Business Loan Program
for Business Development and Building Improvements
PURPOSE STATEMENT:
The City of Elgin and the Elgin financial institutions have
established a special loan program for building improvements and
business development in Center City Elgin in an effort to stimulate
expansion, reinvestment and business retention.
LOAN TERMS:
Interest Rate : 6% paid by borrower.
Term of Loan: Up to a 10 year amortization.
Collateral : First or Second mortgage on
property.
Maximum Loan: Up to $150 , 000 per building
project .
Purpose of Loan: Loan proceeds must be used for
business development and
expansion * , building
improvements (interior &
exterior) .
City of Elgin pays additional
interest to Lender monthly in
the amount of the difference
between the actual interest
rate in the approved loan
agreement less six (6%) to be
paid by the Borrower. The
maximum or ceiling for an
interest rate in an approved
loan agreement is fifteen per-
cent (15%) per year.
Monthly Payment : Separate bills sent to borrower
(for principal payment plus 6%
interest) and to City (for
additional interest between 6%
and 15% .
* Expansion is defined as the addition of multiple employees,
and/or the occupancy of additional office, manufacturing,
retail or storage space in order to enhance a new or existing
business .
ELIGIBILITY REQUIREMENTS:
To be eligible to apply for this special loan program, the applying
business must satisfy both of the following criteria :
1 . Geographic : The business must be located in Center City
Elgin, in the areas outlined in Appendix A.
2 . Type of Business : The business must be engaged in
retailing, wholesaling, distribution, professional
services, technology industry and other types of general
commercial and retail lines of business consistent with
those business uses identified as desirable in the
adopted Riverfront/Center City Master Plan.
GENERAL REQUIREMENTS:
1 . Loan proceeds must be used strictly for business
development, expansion and/or for building improvements .
This program does not include financing for furniture or
standard office equipment (i .e . personal computers and
related equipment) .
2 . Building improvements must be done by an independent
contractor. Agreement with contractor must be supported
by two different contractor bids .
3 . Any business which is approved and is to receive benefits
under this Center City Special Business Loan Program must
execute a written agreement with the City in a form as
directed by the City which shall include the terms
necessary to comply with the provisions of the program
requirements and which shall include an agreement by such
business to complete building improvements within a
specified time period and to thereafter remain in
business at the specified location for a period of not
less that three years . If the business is required to
vacate the Center City location due to action directed or
supported by the City, the business must relocate within
the Center City in order to retain the benefits of the
Business Loan Program.
QUALIFYING STANDARDS:
1 . Applicant business and owner must have an acceptable
credit history with a record of timely loan payments .
2 . Business profits and cash flow must be sufficient to
support loan payments in accordance with the customary
loan (with the loan to value ratio not to exceed 75% to
80%) unless other collateral or financial strength is
provided.
APPLICATION PROCESS:
1 . Eligible businesses should complete the loan program
application form and submit it to the bank, savings and
PPg
loan official, or other pre-approved lending program.
2 . Once the loan is conditionally approved and structured by
the lending institution, the lender shall complete a loan
proposal for submission to the City of Elgin for final
approval .
3 . Approval by the City of Elgin will be conditioned upon
(1) available funds, (2) compatibility with Center City
development plans, (3) adherence to the objectives and
regulations of the program and (4) entry into a program
agreement with the City in the form as directed by the
City.
4 . The lending institution and business applicant may elect
to proceed with a conventional market rate loan in the
event that the City of Elgin denies the special loan
program application.
SUPPLEMENTAL LOAN AMOUNTS :
If a lending institution approves subsequent increases in the
original loan amount approved for a project under this program,
application can be made for an interest subsidy on the increment .
Provision of the subsidy is subject to approval by the City of
Elgin. The City of Elgin is under no obligation to provide benefit
beyond that previously approved.
ADDITIONAL TERMS AND CONDITIONS:
1 . The interest rate ceiling shall be 15%, at which point
the City will be paying 9% and the borrower 6% .
2 . The City shall make monthly interest payments so long as
the borrower continues to make the regular scheduled loan
payments and otherwise complies with the terms of the
agreement to be entered into between the City and the
borrower. If the borrower fails to pay all required loan
payments or otherwise fails to comply with the terms of
the agreement to be entered into with the City, the City
will cease paying.
NO VESTED RIGHTS:
The provisions of this program are intended to provide guidelines
for considering applications for businesses that are seeking to
participate in the Center City Special Business Loan Program. The
City Council of the City of Elgin, in its sole and exclusive
discretion, shall determine whether to provide any of the
incentives contemplated in this program after duly considering the
costs incurred by the City of Elgin for providing the incentives
and after considering the relative gain derived by the public from
those incentives . The City Council of the City of Elgin further
expressly reserves the right and option to decide at any time
whether or not to provide continued or additional funding for this
program.
The creation or existence of this program shall not be construed to
create or provide any vested rights in any person or organization
to obtain approval of a program application, a program agreement or
any incentive, grant, rebates or funding thereunder.
•
APPLICATION FOR
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date :
Loan Amount Requested: $ Total Project Cost : $
Company Name :
Address :
Phone :
Owner' s Name (s) :
Type of Business :
Purpose of Loan:
Does this loan represent an addition to a loan previously approved
for this project? YES NO
If yes, please indicate original amount, date approved and total
loan amount with proposed increment .
Original loan approved: $
Date Approved:
Total loan with proposed increment : $
BREAKDOWN OF PROJECT
AMOUNT CONTRACTOR DESCRIPTION OF WORK
1 . $
2 . $
3 . $
4 . $
OTHER CONTRACTOR BIDS OBTAINED
DESCRIPTION OF PROPERTY:
(Size & Description)
APPRAISED VALUE :
OWNER IN TITLE :
EXISTING MORTGAGE
ON PROPERTY:
OTHER INFORMATION REQUIRED INITIALLY:
1 . Business Year end Financial Statements - last two years .
2 . Business Interim Financial Statement - current year-to-date.
3 . Personal Financial Statement - current.
4 . Copy of Contractor Estimates .
5 . Corporate and/or Personal Tax Returns may be required.
6 . Appraisal of property may be required.
The undersigned applicant hereby certifies that the loan funds
obtained shall be used for the purposes outlined in this
application.
DATE
Applicant Business
BY:
Owner
Please deliver this completed application to the bank or savings
and loan official of your choice. They will process your credit
application and submit a loan proposal to the City of Elgin for
final approval .
Revised 03-19-01
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`'�� ,�'ti City ofElgin Agenda Item No.
: , �
wil 1
! _
March 2 , 2001 7 :,, 1z' ' a .. .
IIntgig
a I
TO: Mayor and Member of the City Council ALIVE DOWNTOWN
FROM: Joyce A. Parker, City Manager
SUBJECT: Review of Center City Special Business Loan Program
PURPOSE
The purpose of this memorandum is to present to the Mayor and
members of the City Council a revision to the Center City Special
Loan Program.
BACKGROUND
In November 2000, the principles of Togaworld. com contacted the
City requesting assistance for the purpose of growing their
business . City staff assisted Togaworld with their move to
downtown (Promac building) from a Route 31 location. Togaworld
also requested a loan of $36, 000 and a jobs grant of $4 , 000 .
Following a review of the request, City staff was reluctant to
develop a new loan program directed toward business development and
expansion. Togaworld was encouraged to contact the Fox Valley
Micro Loan Fund at Elgin Community College . City staff suggested
that if Togaworld was able to secure a loan through the Micro Loan
Program, then the existing Center City Special Business Loan
Program could be revised to allow their participation within the
program. Togaworld has received approval from the Micro Loan Fund
for participation in the loan program. A loan approval letter is
attached. The approved loan is for $50, 000 at 15 . 0% interest for
five years . In order for Togaworld to participate in the City' s
Center City Special Business Loan Program, certain revisions must
be made to the current program. A copy of the current guidelines
is attached. The proposed revisions are as follows :
Revision to Center City Special Business Loan Program
March 2 , 2001
Page 2
Current Program Proposed Program
1 . Purpose : Building Improvements 1 . Building improvements and
business expansion
2 . Loan term: 10 years 2 . Up to 10 years
3 . Loan maximum: $150 , 000 3 . Up to $150 , 000
4 . Interest Ceiling: 14% 4 . 15%
5 . Types of Business : Retail , 5 . Add technology, industry
wholesale, distribution, and commercial and retail
professional services lines of business consis-
tent with these business
uses included as desirable
in the adopted Riverfront/
Center City Master Plan
6 . Loan Proceeds Use : 6 . Add business development
Building improvements not and expenditures . Exclude
for equipment and furniture only furniture as an in-
eligible expense .
7 . Application Process : Applicant 7 . Add other pre-approved
must complete the loan appli- lending program
cation process with a bank or
savings and loan institution
The adoption of the above-proposed revisions to the Business Loan
Program would allow Togaworld to participate in the City-sponsored
Business Loan Program. Under the proposed participation level,
Togaworld would make monthly principal and 6% interest payments to
the ECC Micro Loan Program and the City would make monthly 9%
interest payments to ECC.
In the revised assistance request, Togaworld also requested a
$6, 000 job grant based upon the addition of six jobs following
their move to the Center City. The following positions wer
e added.
Position Salary/Rate
1 . Graphic Design $12/Hour
2 . Sales Reps (2) $65, 000/Year
3 . Vice President/Sales $96, 000/Year
4 . Chief Financial Officer $78, 000/Year
5 . Director of Production $60, 000/Year
Revision to Center City Special Business Loan Program
March 2 , 2001
Page 3
The funding assistance from Togaworld and the subsequent proposed
revisions to the Center City Business Loan Program were reviewed by
the Development Review Team (DRT) . The DRT concurs with the
proposed change to the Business Loan Program, supporting Togaworld
with its loan application to the Fox Valley Micro Loan Program and
the approval of a job grant totaling $5, 000 . The DRT felt that the
salary level for the Graphic Design position does not meet the
within the City' s Economic Development
guidelines set forth y
Guidelines .
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
Elgin Area Chamber of Commerce staff, Chamber of Commerce
Technology Council, Development Review Team. Togaworld is also in
agreement with the staff recommendation.
U FINANCIAL IMPACT
The total loan interest incentive as proposed would equal
$13 , 401 . 58 for the five-year term of the loan. The first year cost
of the loan incentives is $2 , 680 . 32 . The job grant would be
$5, 000 . The incentive payment would be charged to Economic
Development Initiatives within the Riverboat Lease Fund, account
number 276-0000-791 . 80-27 . Currently, a funding level of $171, 665
is available in 2001 to fund this payment after deducting previous
commitments . The beginning budget for 2001 Economic Development
Projects was $653 , 500 .
LEGAL IMPACT
None .
ALTERNATIVES
1 . Modify the Center City Special Business Loan Program as
outlined, approve the participation of Togaworld in the
revised program and approve a job grant of $5, 000 .
2 . Modify the Center City Special Business Loan Program as
outlined, approve the participation of Togaworld in the
revised program.
3 . Modify the Center City Special Business Loan Program and deny
the application of Togaworld to participate in the program.
Revision to Center City Special Business Loan Program
March 2 , 2001
Page 4
4 . Maintain the Center City Special Business Loan Program as it
currently exists .
RECOMMENDATION
Staff recommends that the Center City Special Business Loan Program
be revised as outlined, that the participation of Togaworld in the
revised program be authorized and that a $5 , 000 job grant be
awarded to Togaworld.
Respectfully submitted,
a •
(do YceA. Parker
City Manager
amp
Revised 03-02-01
DRAFT
CITY OF ELGIN
Center City Special Business Loan Program
for Business Development and Building Improvements
PURPOSE STATEMENT:
The City of Elgin and the Elgin financial institutions have
established a special loan program for building improvements and
business development in Center City Elgin in an effort to stimulate
expansion, reinvestment and business retention.
LOAN TERMS:
Interest Rate : 6% paid by borrower.
Term of Loan: Up to a 10 year amortization.
Collateral : First or Second mortgage on
property.
Maximum Loan: Up to $150 , 000 per building
project .
Purpose of Loan: Loan proceeds must be used for
business development and
expansion , building
improvements (interior &
exterior) .
City of Elgin pays additional
interest to lender monthly at P
+ 1% less 6% paid by borrower.
Ceiling 15% .
Monthly Payment : Separate bills sent to borrower
(for principal payment plus 6%
interest) and to City (for
additional interest between 6%
and P + 1%) .
ELIGIBILITY REQUIREMENTS:
To be eligible to apply for this special loan program, the applying
business must satisfy both of the following criteria:
1 . Geographic : The business must be located in Center City
Elgin, in the areas outlined in Appendix A.
2 . Type of Business : The business must be engaged in
retailing, wholesaling, distribution, professional
services, technology industry and other types of general
commercial and retail lines of business consistent with
those business uses identified as desirable in the
adopted Riverfront/Center City Master Plan.
GENERAL REQUIREMENTS:
1 . Loan proceeds must be used strictly for business
development, expansion and/or for building improvements .
This program does not include financing for furniture .
2 . Building improvements must be done by an independent
contractor. Agreement with contractor must be supported
by two different contractor bids .
QUALIFYING STANDARDS :
1 . Applicant business and owner must have an acceptable
credit history with a record of timely loan payments .
2 . Business profits and cash flow must be sufficient to
support loan payments in accordance with the customary
loan (with the loan to value ratio not to exceed 75% to
80%) unless other collateral or financial strength is
provided.
APPLICATION PROCESS:
1 . Eligible businesses should complete the loan program
application form and submit it to the bank, savings and
loan official, or other pre-approved lending program.
2 . Once the loan is conditionally approved and structured by
the lending institution, the lender shall complete a loan
proposal for submission to the City of Elgin for final
approval .
3 . Approval by the City of Elgin will be conditioned upon
(1) available funds, (2) compatibility with Center City
development plans and (3) adherence to the objectives and
regulations of the program.
4 . The lending institution and business applicant may elect
to proceed with a conventional market rate loan in the
event that the City of Elgin denies the special loan
program application.
SUPPLEMENTAL LOAN AMOUNTS :
If a lending institution approves subsequent increases in the
original loan amount approved for a project under this program,
application can be made for an interest subsidy on the increment .
Provision of the subsidy is subject to approval by the City of
Elgin. The City of Elgin is under no obligation to provide benefit
beyond that previously approved.
•
ADDITIONAL TERMS AND CONDITIONS:
1 . The interest rate ceiling shall be 15%, at which point
the City will be paying 8% and the borrower 7% .
2 . The City shall make monthly interest payments so long as
the borrower continues to make the regular scheduled loan
payments . If the borrower, fails to pay, the City will
also cease paying. If the borrower resumes paying, then
the City will resume paying.
APPLICATION FOR
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date :
Loan Amount Requested: $ Total Project Cost : $
Company Name :
Address :
Phone :
Owner' s Name (s) :
Type of Business :
Purpose of Loan:
Does this loan represent an addition to a loan previously approved
for this project? YES NO
If yes, please indicate original amount, date approved and total
loan amount with proposed increment .
Original loan approved: $
Date Approved:
Total loan with proposed increment : $
BREAKDOWN OF PROJECT
AMOUNT CONTRACTOR DESCRIPTION OF WORK
1 . $
2 . $
3 . $
4 . $
OTHER CONTRACTOR BIDS OBTAINED
DESCRIPTION OF PROPERTY:
(Size & Description)
APPRAISED VALUE :
OWNER IN TITLE :
EXISTING MORTGAGE
ON PROPERTY:
OTHER INFORMATION REQUIRED INITIALLY:
1 . Business Year end Financial Statements - last two years.
2 . Business Interim Financial Statement - current year-to-date.
3 . Personal Financial Statement - current.
4 . Copy of Contractor Estimates.
5 . Corporate and/or Personal Tax Returns may be required.
6 . Appraisal of property may be required.
The undersigned applicant hereby certifies that the loan funds
obtained shall be used for the purposes outlined in this
application.
DATE
Applicant Business
BY:
Owner
Please deliver this completed application to the bank or savings
and loan official of your choice . They will process your credit
application and submit a loan proposal to the City of Elgin for
final approval .
•
•
•
CITY OF ELGIN
Center City Special Business Loan Program
for Building Improvements
PURPOSE STATEMENT :
The City of Elgin and the Elgin financial institutions have estab-
lished a special loan program for building improvements in center
city Elgin in an effort to stimulate expansion, reinvestment and
business retention .
LOAN TERMS :
Interest Rate : 6% paid by borrower
Term of Loan : 10 year amortization
Collateral : First or Second mortgage on
property
• Maximum Loan : Up to $150 , 000 per building project
Purpose of Loan: Loan proceeds must be used for
building improvements ( interior &
exterior)
City of Elgin pays additional
interest to lender monthly at P -'-
1% less 6% paid by borrower_
Ceiling 14% .
Monthly Payment : Separate bills sent_.to borrower
( for principal payment plus 6%
interest) and to City ( for
additional interest between 6% and
P - 1%)
ELIGIBILITY REQUIREMENTS :
To be eligible to apply for this special loan program, the applying
business must satisfy both of the following criteria :
Geographic : The business must be located in center city
1
Elgin, in the areas outlined in Appendix A.
2 . Type of Business : The business must be engaged in
retailing, wholesaling, distribution, professional services
and certain other types of general commercial lines of
business as described in Appendix B . •
GENERAL REQUIREMENTS :
1 . Loan proceeds must be used strictly for commercial building
improvements . This program does not include financing for
working capital , equipment, furniture or other purposes not
involving building improvements .
Buildingimprovements must be done by an independent
2 .
contractor. Agreement with contractor must be supported
ported
by two different contractor bids .
•
• QUALIFYING STA_lDARDS :
1 . Applicant business and owner must have an acceptable
credit history with a record of timely loan payments .
2 . Business profits and cash flow must be sufficient to
support loan payments in accordance with the customary
loan (with the loan to value ratio not to exceed 75% to
• 80% ) unless other collateral or financial strength is
provided) .
APPLICATION PROCESS :
1 . Eligible businesses should complete the loan program
application form and submit it to the bank or savings and
loan official that normally handles their account .
2 . Once the loan is conditionally approved and structured by
the lending institution, the lender shall complete a loan
proposal for submission to the City of Elgin for final
approval . •
•
3 . Approval by the City of Elgin will be conditioned upon ( 1)
available funds , ( 2 ) compatibility with Center City devel-
opment plans and ( 3 ) adherence to the objectives and regu-
lations of the program.
•
4 . The lending institution and business applicant may elect to
proceed with a conventional market rate loan in the event
that the City of Elgin denies the special loan program
application.
SUPPLEMENTAL LOAN AMOUNTS :
If a financial institution approves subsequent increases in the
original loan amount approved for a project under this program,
application can be made for an interest subsidy on the increment .
Provision of the subsidy is subject to approval by the City of Elgin.
• The City of Elgin is under no obligation to provide benefit beyond
that previously approved.
ADDITIONAL TERMS AND CONDITIONS :
L 1•
1 . The interest rate ceiling shall be 14% , at which poin�. the
City will be paying 8% and the borrower 6% .
•2 . The City shall make monthly interest payments so long as
the borrower continues to make the regular scheduled loan
payments . If the borrower, fails to pay, the City will also
cease paying . If the borrower resumes paying, then the City
will resume paying .
• BUSLOANP . ROG/TEXT081/NEWCENTU. RY
4
•
VOL
Appendix A
PROGRAM TARGET AREA
• Geo raohic Area/Location :
Businesses and organizations located in the following districts
may be eligible for loans provided that the Proposed improve-
ments are consistent with the Center City development goals for
their respective district and the area is not targeted for re-
development . Districts are defined by the Center City Master
Plan .
1 . Commercial Core .
? . Gateway - west side of State Street .
3 , State Street Corridor - west of State street north to
Kimball/Lawrence .
4 . Civic Center/Cultural .
5 . Transition. = �
6 . Hill top .
•
•
•
•
PROGTARG. ET/TEXT081/NEWCENTU. RY
Appendix B
• STANDARD INDUSTRIAL CLASSIFICATION CODE
( 1987 Manual)
Major Industry Industry
Group Group
523 Paint, glass and wallpaper stores
525 Hardware stores
53 General merchandise stores
544 Candy, nuts , confectionary
545 Dairy products
546 Retail bakeries
549 Except for poultry dealers
56 Apparel and accessory stores
57 Home furniture, furnishings and
equipment stores
58 Eating and drinking places
591 Drug stores and proprietary stores
593 Antique stores only
594 Miscellaneous shopping goods stores
599 Retail stores , not elsewhere classified
60 Depository Institutions
61 Non-depository credit institutions
62 Security and commodity brokers , dealers ,
exchanges and services
63 Insurance carriers
64 Insurance agents , brokers and service
65 Real estate
67 Holding and other investment offices
7219 • Laundry and garment services , not elsewhere
classified
722 Photographic studios , portrait
723 Beauty shops
724 Barber shops
725 Shoe repair shops and shoe shine parlors
726 Funeral service and crematories
729 Miscellaneous personal services
73 Business services
753 Automotive repair shops
78 Motion pictures
79 Amusement and recreational services
80 Health services , except for industry group
809
81 Legal Services
824 Vocational schools
829 Schools and educational services , not elsewhere
classified
841 Museums and art galleries
86 Membership organizations
87 Engineering, accounting, research, management
and related services
CENTER.CTY/NCPBOAR.D
yiY's
APPLICATION FOR
ABB
CITY OF ELGIN
CENTER CITY SPECIAL BUSINESS LOAN PROGRAM
Date :
Loan Amount Requested : $
Total Project Cost : $
Company Name :
Address :
Phone :
Owner ' s Name ( s ) :
Type of Business :
Purpose of Loan :
)oes this loan represent an addition to a loan previously approved
for this project? YES NO
If yes , please indicate original amount, date approved and total loan
amount with proposed increment.
' Original loan approved: $
Date Approved: •
• Total loan with proposed increment : $
•
BREAKDOWN OF PROJECT
AMOUNT CONTRACTOR DESCRIPTION OF WORK
1 $
•
2 . $
3 . • $
4 . $
BUSLOANA. PPL/TEXTO81/NEWCENTU. RY z,
•
OTHER CONTRACTOR BIDS OBTAINED
DESCRIPTION OF PROPERTY :
(Size & Description)
APPRAISED VALUE : •
OWNER IN TITLE :
EXISTING MORTGAGE
ON PROPERTY : •
• OTHER INFORMATION REQUIRED INITIALLY :
1 . Business Year end Financial Statements - last two years .
2 . Business Interim Financial Statement - current year-to-date .
3 . Personal Financial Statement - current .
4 . Copy of Contractor Estimates .
5 . Corporate and/or Personal Tax Returns may be required.
6 . Appraisal of property may be required .
The undersigned applicant hereby certifies that the loan funds
obtained shall be used for the purposes outlined in this application.
•
DATE
Applicant Business
_
BY :
•
Owner
Please deliver this completed application to the bank or savings
and
loan official of your choice . They will process your credit applica-
tion and submit a loan pr
oposal to the City of Elgin for final
approval .
. .
, .
. .
. . „.
•
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