[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.
