Res 2012-156 - Laserfiche WebLink

Home Browse Search

must provide sufficient financial and other information to establish that it can successfully complete the project. RLF gap financing is intended to meet the minimum needs of the business. 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- Revolving Loan Funds cannot be used for: • debt service, • refinancing, • paying the salaries of the business principals, • Repaying expenditures made prior to the RLF funding approval; or • Purchasing equipment, etc. from a company substantially owned by one or more of the business principals of the business receiving the RLF funds.(i.e., if one or more of the business owners of Business "A" also own Business "B ", then RLF funds cannot be used by Business A to buy equipment from Business "B" Jobs — The City will only provide financial assistance to a business that commits to create and /or retain jobs where at least 51 percent of the jobs benefit low and moderate income (LMI) individuals. LMI levels are provided annually by HUD and are the same income levels used for Section 8 housing. The level of financial assistance is directly related to the number of created /retained jobs. At no time will this program consider an application for assistance where the cost per job exceeds $25,000. Only full -time permanent and part -time permanent created /retained jobs, as defined below, are eligible for consideration. Credit will only be given for jobs created /retained at the project site described in the application, which must be within the city limits or its ETJ. No credit will be given for transferred jobs or positions held by principals. A job is defined as a permanent full -time position held by one full -time employee or two part -time employees and the position must be required 12 months out of the year. The determination compares the starting and ending payroll to determine the number of jobs created /retained. Jobs are further defined below. • A full -time job is defined as permanent employment for 1,820 hours or more per year or 35 hours or more per week per person on an annualized basis. • A part -time job is defined as permanent employment for at least 1,040 hours per year per person on an annualized basis. Two part -time jobs equal one full -time job. • Seasonal jobs are not eligible for consideration in the program. • Leased employees must meet the same requirements as described above, as long as the business has control over the leased employee(s). In order to consider jobs retained as a result of RLF assistance, submit documentation of clear and objective evidence that permanent jobs will be lost without RLF assistance. For these purposes, clear and objective evidence that jobs will be lost would include: • Evidence that the business has issued a notice to affected employees that their jobs may be lost or made a public announcement to that effect, or • Analysis of relevant financial records which clearly and convincingly shows that the business is likely to have to cut back employment in the near future without the planned intervention. 7