A. Goals: Salt Lake City Corporation uses the Economic Development Loan Fund ("ED Loan Fund" or "EDLF", formerly known as Revolving Loan Fund) to increase employment opportunities, stimulate business development and expansion, encourage private investment, promote economic development, enhance neighborhood vitality and commercial enterprise in Salt Lake City (SLC), while maintaining the corpus of the EDLF in a sufficient manner to perpetuate the goals of the program (collectively "goals").
B. ED Loan Fund Program: The Economic Development (ED) Division under the supervision of the Department of Community and Economic Development (CED) administers the Economic Development Loan Fund, develops and administers loan evaluation tools, and tracks the projects participating in the ED Loan Fund Program.
C. Maintain And Review: The ED Loan Fund Executive Order and Program guidelines shall be reviewed at least every six (6) months and reported to the CED Director and/or Review Committee by the ED Division, including an analysis of the ability to maintain the corpus of the fund at sustainable levels, including reporting on the balance of outstanding loans, available balance, total assets, defaults and delinquencies, and projections of at risk loans and the overall sustainability of the fund and/or recommendations to changes to improve the sustainability of the fund, as well as the impact on neighborhoods and City objectives and effectiveness of applications, calculators or tools created to administer the Loan Fund. The ED Division shall also review and present one such review to the Administration and City Council at least annually.
D. Legislative Resolution: The processes and criteria governing the administration of the ED Loan Fund are primarily set forth by the City Council through legislative resolutions. If any conflict exists between these administrative rules and a current legislative resolution, then the legislative resolution will control.
E. Loan Eligibility: Loan eligibility is set forth in the "Loan Criteria" passed by the City Council and more details can be found in the loan application and loan procedures. Generally, to obtain a loan through the ED Loan Fund, proposed loan projects must be financially viable and a legal and properly zoned use. Proceeds of the loan must be used for legitimate business uses, and the business must be within the corporate limits of Salt Lake City or to assist business relocation or expansion into the City. The applicant may be a for profit business or a revenue producing venture of a nonprofit organization. Nonprofit applicants must use loan proceeds as part of a venture, program or project that independent of charitable contributions to the nonprofit creates sufficient cash flow from the venture so as to adequately cover EDLF debt.
F. Additional Loan Fund: The ED Division may determine that additional economic development finance options or loan products are prudent to further the goals and objectives of the City and/or the EDLF. In which case, the ED Director or Loan Committee may forward a recommendation to the Director of CED to seek the City Council's approval to create a new loan category, use of funds, etc., in order to support the purpose of an additional loan or finance product. Such request may include, but not be limited to, additional loan funds, amending use of funds or loan criteria guidelines based on the nature of the risks and opportunities associated with the proposal; the request may be short term in duration or phased out after a certain project period, or run long term, concurrently, and complementary to the EDLF. (2019 Compilation)