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*Job Commitment - A full-time job is defined as employment for 1820 hours or more per year or 35 hours or more per week per person. A part-time job is defined as employment for less than 1820 hours per year. Two part time jobs may be combined to create a FTE job. Credit will only be given for jobs created/retained at the project site described in the application. Labor Standards - Any kind of construction-related activities that are being funded, in whole or in part, with RLF funds must comply with the Davis-Bacon Act (labor standards). If RLF funds are being used solely for purchase of equipment (without installation/labor charges) and/or certain non-construction costs, the Davis-Bacon Act requirements may not apply. The applicability and extent of Davis-Bacon Act requirements in regard to a particular project will be determined on a case-by- case basis. *Leverage Requirement - The all other funds/RLF ratio must not be less than 1 :1. For the 1:1 match, all other funds are defined as all other sources of funds for the project as reflected on the Sources and Uses of Funds Form, with the exception of any other HUD monies. HUD money includes program income. Refinancing of other funds may be included as a leverage on a case-by-case basis (if the refinancing provides more favorable terms for the borrower). A firm financial commitment and a verification of deposit, if applicable, for all matching funds will be required upon submission of the application. Funds and costs, outlined on the Sources and Uses of Funds Form, may not be spent or incurred prior to a contract award date from the City. Liability - Title I of the Housing and Community Development Act of 1974 (42 USC 5.301 et seq.) requires all Community Development Block Grant (CDBG) funds to be expended in such a way to satisfy one of three national objectives specified in the statute. Revolving Loan Funds provided under the CDBG are required to comply with the national objective of principally befitting persons of low and moderate income. This requirement is fulfilled by funding projects which create or retain jobs, principally for persons of low and moderate income. The City of San Marcos has certified to the U.S. Department of Housing and Urban Development (HUD) that our expenditure of economic development funds will satisfy this national objective and we have also executed a grant agreement with HUD containing this requirement. The City of San Marcos, therefore, has no choice but to hold the local business recipient of economic development funds accountable to the same extend that HUD holds the City accountable. In the event of a failure to create or retain all the jobs specified in a City of San Marcos Revolving Loan Program contract, it is the City's standard policy to require a recipient business to reimburse the City for the number of jobs not created or retained. For example, if the City provided $20,000 in Revolving Loan Program funds to a business for an economic development project in which 10 permanent jobs for low to moderate income persons were to be created and only 5 jobs were actually created, the City would require repayment of $10,000.00. HUD, however, can authorize the City to deviate from this policy in certain situations. For cases in which the required number of jobs was beyond the control of the business, the business was otherwise in compliance with its contract, and the business has made every effort to create the jobs specified in the contract and has agreed to take steps to provide the appropriate number of jobs in the future, the City is authorized to waive repayment. This determination must necessarily be made on a case-by-case basis. Violation of other aspects of the loan may result in acceleration of the payment. *Location Requirement for the Business - The City will consider a project that is in the City's corporate limits, or the Extraterritorial Jurisdiction of the City of San Marcos. If the business location is not in the City of San Marcos' city limits, then the business must commit to create jobs, 70% of which will be for residents of the City of San Marcos. *Low/Moderate Income Requirement - See page 2 for an explanation. *Maximum/Minimum Awards - For projects where the funds requested will be utilized for a loan to a business for eligible activities, the following maximum and minimum award amounts apply to the Revolving Loan Fund: Maximum: $ 290,000