(A) The city shall utilize the Kewanee Economic Development Corporation or Chamber of Commerce, who shall appoint members as needed to the Business Loan Committee. The committee shall consist of, but not be limited to the City Manager, City Attorney, KEDC Economic Development Coordinator, and two experienced area financial institution commercial lenders. The committee shall review all applications to the revolving loan fund after the Economic Development Coordinator has packaged the application and referred to the KEDC. The committee will meet the applicant, meet with the representative of the participating lending institution, visit the site if necessary, negotiate terms, length, security of loans and ensure compliance with the RLF goals and objectives. A recommendation will be prepared for the KEDC Board's review for approval or denial which will include a description of the project, project costs, source of funds, security required, special conditions and reasons for approval or denial. All other application information is kept confidential. The KEDC Board shall forward a recommendation to the City Council that will formally approve or deny the application.
(B) The RLF will be staffed by the City Manager, KEDC Economic Development Coordinator and the City Attorney, and may include the chamber executive if commercial loans are being considered.
(C) The loan documents, including commitment agreements, liens, title policies, security recordings, transfer tax declarations, amortization schedules and security releases, shall be obtained and completed by the City Attorney. The City Manager shall monitor repayments of the loan, and the KEDC or chamber executive will monitor job creation and/or retention reports required to be provided semi- annually until the commitment is met, monitor other special conditions required by the loan and submit semi-annual reports on the status of the RLF to the Department of Commerce and Economic Opportunity.
(D) Delinquent loans. When an RLF payment becomes 15 days past due a minimum 7% late fee is added to the delinquent amount, as established in the loan agreement. The City Manager, or designee, may place a telephone call, but will mail a formal letter requesting payment. At 30 days past due the city will pursue payment through the KEDC Director's assistance, and will notify the City Attorney of the status of the loan delinquency. Should the payment become 45 days past due the matter will be turned over to the City Attorney to pursue. All legal rights will be exercised by the city to reclaim funds. Legal counsel will be consulted during foreclosure and liquidation proceedings if events warrant.
(Res. 4309, passed 5-27-03)