Res 2002-217 - Laserfiche WebLink

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*Equity Requirement - A minimum of ten percent (10%) equity injection (of the total project costs) in the form of cash, land, buildings, equipment, furniture or fixtures by the business is required. A thirty percent (30%) equity injection is required for start-ups. A firm financial commitment and a verification of deposit for all cash equity injections will be required upon submission of the application. False Information - In those instances where it is determined that an applicant provided false information for the purpose of improving its scoring, the following actions may be taken on a case-by-case basis: (1) Even if an award has been made, the business may be liable for RLF funds released if the false information resulted in the project being funded. (2) The business will be ineligible to apply for San Marcos Revolving Loan Program funding for a period of two program years or until any issUe of restitution is resolved, whichever is longer. (3) Additionally, a person commits an offense if he: (A) Knowingly makes a false entry in, or false alteration of, a government record; (B) Makes, presents, or uses any record, document, or thing with knowledge of its falsity and with intent that it be taken as a genuine governmental record; or (C) Intentionally destroys, conceals, removes, or otherwise impairs the verity, legibility, or availability of a government record. A governmental record is defined as anything belonging to, received by, or kept by government for information, or that government is required by law to be kept by others for information of government. An offense under Section 3, above is a Class A misdemeanor unless the actor's intent is to defraud or harm another, in which event the offense is a felony of the third degree. *Funding Cycle - The Revolving Loan Fund will be available to eligible businesses on a first come, first served basis. Please contact the City CDBG Coordinator to verify the availability of funds before preparing applications. *Gap Financing - See page 2 for an explanation. Guarantor - Proprietor, partner, officer and stockholder owning 20% or more of the business. (Note: If the RLF Program is accessed, personal guarantees will be required for loan payments for the term of the loan and all contract conditions until the RLF contract is successfully closed). Each principal of a business assisted with funds provided by the RLF will be jointly and severally liable for funds provided to support such business in the event the business is dissolved, files under the federal bankruptcy code, or otherwise ceases to be a going concern. *Ineligible Uses of Funds - The City will not grant Revolving Loan Funds to a business. Revolving Loan Funds can not be used for debt service, refinancing or for paying the salaries of the business principals. Revolving Loan Funds loaned to Company A cannot be used to purchase equipment, land, etc. from Company B, when both Company A and Company B are substantially owned by one or more of the same individuals. Interest Rate - The interest rate charged on the Revolving Loan Fund will be fixed (as of the contract date) at the Wall Street Journal prime rate. The business may request a subsidized rate (for a period of no more than two years from the contract date) if the business can document lower net profit margins or a lower rate of return when compared to industry standards (such as Robert Morris Associates). Historical information, if applicable, and the income and cash flow projections will be reviewed in making this determination.