R2002-108 ENDORSING THE SUBMISSION OF AN APPLICATION

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Program anticipated payments are no longer available through HUD; and 4.) Loan term-twenty years and interest rate equivalent to the City's rate. , B. Activities conducted by the City shall meet the following conditions: 1. To the extent rants or interest write-downs are ) g utilized, the City shall identify other sources of repayment in the event the CDBG entitlement is not available to make the payments on the HUD Section ' 108 guaranteed notes; I 2.) If loans or other assistance are provided to a for-profit I entity the maximum amount of the loan will be I determined on a case by case basis after an ' underwriting review which, in the case of a for-profit � borrower, must satisfy HUD's underwriting ' requirements under CDBG as found in the "Safe Harbor"guidelines; ' 3.) Priority will be given to those projects which , maximize private financing,jobs for low and moderate ' income persons andlor overall benefits to the ' community. i 4.) Generally, project loan terms will be for 20 years or I', the length of private financing available whichever is �' least. Loans for capital equipment will be limited to a depreciable life of the equipment under the federal tax I code; working capital will be shorter term and tied to ' relevant business revenue, receivables, inventory with specific contracts assigned to the City, and/or other collateral acceptable to HUD; 5.) The interest rate will be determined by the HUD underwriting "Safe Harbor" guidelines, but will be no less than the City's cost of Section 108 funds, unless justified by the underwriting and a source of funds for an interest write-down is available (such as future grants); and 6.) All projects and activities will be consistent with HUD's Consolidated Plan submission by the City of � Decatur. Proposed Section 108 Loan Application Page 5 �()/1 1/�2