A. An eligible business, upon prior approval of the city council, shall be reimbursed a portion of the interest paid on a loan from a lending institution, the proceeds of which are used in the creation of a new business or the expansion of an existing business.
B. Regardless of the amount of the individual loan, reimbursement of a portion of the interest paid thereon shall be limited to that paid on the maximum amount of one hundred thousand dollars ($100,000.00) amortized not to exceed a term of seven (7) years, the length of the term of the loan notwithstanding.
C. The city will reimburse the eligible business interest paid on such loan at the rate of two and one-half percent (21/2%) of the amount of the loan amortized.
D. Late fees, penalties or additional interest due on such loan shall not qualify for reimbursement.
E. In the event the loan to an eligible business participating in the interest reimbursement program is refinanced, the balance of the loan for which interest is to be reimbursed shall not be increased nor shall the term for which reimbursement is to be paid be increased. A loan by the city revolving loan fund shall not qualify as a loan eligible for interest reimbursement.
F. Total outstanding eligible loans for which reimbursement of interest is available shall not exceed one million dollars ($1,000,000.00). In no event shall the city be obligated to pay more than twenty five thousand dollars ($25,000.00) annually in reimbursement of interest. The original amount of an eligible loan for which reimbursement of interest is available shall not be increased for the purpose of this program during the term for which the city is committed to pay interest on such loan.
G. The reimbursement of interest provided herein shall be on a quarterly calendar year basis. The eligible business to receive such reimbursement shall submit to the city finance director-treasurer all required information by the thirtieth day of the month following the close of the quarter. For such interest to be reimbursed, the following information shall be provided:
1. A signed copy of the loan agreement and loan amortization schedule at the time of acceptance into the program.
2. Proof of payment from the lending institution showing the amount of interest paid and dates paid for the quarter. (Ord. 1899, 2-3-2003)