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private sources of funding, determining the reason for the need for RLF assistance (financing gap), determining <br />the minimum amount of RLF assistance necessary to stimulate the business' investment, and pricing the RLF <br />loan. <br />The analysis of the extent of public benefit includes reviewing the number and types of jobs to be <br />created /retained (in relation to the needs of low and moderate income and other persons who are likely to be <br />employed or retained for employment), the other development which is likely to be stimulated in the area by the <br />activity, the increase to the tax base including property, sales and income taxes in the area, or the increase in <br />needed services which result from the activity. <br />BUDGETJUSTIFICATION <br />Revolving Loan Program projects must include detailed information of ALL COSTS LISTED ON THE <br />SOURCES AND USES OF FUNDS FORM. Funds must be delineated by source and use. This must include <br />all major parts of the project. Source information must include which entity is paying /providing funding for these <br />activities. <br />All budget justifications and opinion letters must be dated within 6 months of the submission of the application <br />and all appraisals must be dated within 12 months of the submission of the application. Please refer to the <br />Equity Definition section under "Program Requirements" pertaining to substantiating the value of all previously <br />expended equity injections. Provide the following documentation to substantiate all remaining project costs as <br />outlined on the Sources and Uses of Funds Form (which will be incurred/ expended upon receipt of a RLF <br />contract award and upon an environmental clearance from the RLF program). <br />1. If the project requires funds for machinery and equipment, provide: <br />a. Type and description of equipment; <br />b. Itemized price list per piece of equipment (include independent, 3rd party source information <br />from a supplier, a catalog, etc.); and <br />C. Eligible machinery and equipment purchases are those that require no construction activity <br />for installation. Installation costs that exceed $2,000 may activate the Davis -Bacon Act. <br />2. If the project requires funds for working capital, provide: <br />a. Description of the inventory and dollar amount per item (include independent, 3rd party <br />source information from a supplier a catalog, etc.); and <br />b. Employee salaries; <br />NOTE: Principal's salaries must be excluded from funding by the RLF; however, Other <br />funds may be allocated to the principal's salaries. <br />C. Operational costs (i.e., rent, insurance payments, and utilities); <br />d. Approved advertising /marketing expenses. <br />NOTE: Contact the City to verify eligibility for all uses of working capital which are not <br />mentioned above. <br />FINANCIAL COMMITMENT LETTERS <br />A firm financial commitment from all funding sources, as outlined on the Sources and Uses of Funds <br />Form, is required upon submission of a RLF application. A letter of commitment, from each funding <br />source outlined on the Sources and Uses Funds form, must be included in the application and should <br />be in the following format (see sample letters): <br />3 <br />