The purpose of this chapter is to provide for and set loan processing
fees for the Merced County department of commerce, aviation and economic
development revolving loan fund (RLF) and the Merced County agricultural
waste management loan programs (AWMLP).
(Ord. 1837 § 1, 2008)
Since 1988, Merced County has operated a RLF capitalized with
grants from the U.S. Department of Commerce, Economic Development
Administration (EDA). The purpose of the RLF is to provide financial
assistance to small businesses located within Merced County which
are unable to obtain loans from conventional sources and which will
retain or create permanent jobs within the county. The EDA approved
RLF operating guidelines provide for various loan fees.
A.
Loan
processing fee payable when application is accepted: $150.
B.
Loan
origination fee not to exceed one percent of the amount borrowed,
payable at closing, with a minimum of $100.
C.
A late
fee of five percent of the payment will be assessed on payments made
later than 30 days from payment date. Loan payments are applied first
to fees and then to interest.
(Ord. 1837 § 2, 2008)
Since 1998, Merced County has operated an AWMLP capitalized
with loans from the state of California, Water Resources Control Board.
The purpose of the AWMLP is to provide financial assistance for improvements
to wastewater management systems at animal confinement facilities
in the county. The operating guidelines provide for various loan fees.
A.
Loan
Application. A nonrefundable loan processing fee of one-half of one
percent of the loan application amount will be required when an application
is submitted and will be used to offset loan costs.
B.
Subordination
Request. A nonrefundable fee of $500 per loan will be required when
a subordination request is submitted.
C.
Parcel
Release Request. A nonrefundable fee of $500 per loan will be required
for parcel(s) requested to be released.
D.
Late
charges of five percent of the payment amount will be levied against
any borrower at 30 days past due. Loan payments are applied first
to fees and then to interest.
(Ord. 1837 § 3, 2008)
