[HISTORY: Adopted by the Mayor and Council of the Town of Snow Hill 5-14-1996 by Ord. No. 1996-2. Amendments noted where applicable.]
The program will have objectives consistent with the national objectives established for use of community development block grant funds. These objectives include creation and retention of jobs, prevention of slum and blight and meeting requirements for public health and safety. Funds are to be used for community development purposes only.
The interest rate for all loans will be fixed at 3%. The maximum term for all loans will be five years. The maximum loan amount will be $10,000. Loans may not exceed 50% of the total project cost. Loans must be matched by private financing or equity contribution.
Any private or nonprofit business entity which will be located within the town limits of Snow Hill may apply for a loan. Applications duly executed by the business owner(s) as applicants will be reviewed by the Council. Applicants must show that the project meets the program objectives and demonstrate financial ability to repay the loan. Applications will be approved or rejected by vote of the Council. Applicants must execute personal guaranties for repayment of the debt. Applicants must furnish proof of matching 50% contribution.
If rejected by the Mayor and Council, applicants may appeal to the Snow Hill Zoning Appeals Board. Appeals must be made within 10 calendar days of notification from the Mayor and Council that the application for financing was not approved.
The program will be administered by the Town Clerk. Recaptured funds and payments will be deposited into a separate revolving loan account. Administrative costs to the town for collection will not be reimbursed from the loan account in excess of 3% of the recaptured funds.
The borrower will pay a fee of $250 to the town to cover legal fees associated with processing the loan and for a credit check. Before a promissory note and check are issued, the borrower will be required to have paid up Key Man insurance and personal guaranties signed by all applicants borrowing the money.
The grant administrator is authorized to establish any other procedures, rules and regulations as necessary to administer this program fairly and protect the funds in the program.