(A) The Economic Development Revolving Loan Program will provide loans at a low interest rate to be set by a committee at no more than $10,000 to any individual business.
(B) Loans will be made from the City of New Haven Revolving Fund.
(C) The total loan amount from the City of New Haven to all business shall not exceed $250,000.
(D) To qualify, a New Haven business must employ between two and 49 employees and applicant must be current on all taxes owed by it.
(E) The applicant shall be required to sign a note which will be secured by collateral consisting of a mortgage to real estate owned by the business and/or security agreement in the assets of the business and shall be obligated to make minimum of interest only payments for six months with full repayment within 24 months with no penalty for prepayment.
(F) The note shall provide for a low rate of interest to be established by a Governing Committee.
(G) A Governing Committee shall be formed to review applications and administer the loans consisting of the New Haven Chamber of Commerce President, a member selected by the New Allen Alliance, the City of New Haven Community and Economic Development Director, two appointees by the Mayor of New Haven, one appointee by the New Haven City Council, and one appointee by the New Haven Board of Works.
(H) The business will pay an application fee equal to the cost to administer the program and preparation of the loan documents.
(I) The Governing Committee shall have the ability to delegate the administration to the program to a person or agency only if such administration would be at no cost to the City of New Haven.
(Res. R-20-08, passed 6-16-2020; Res. R-20-18, passed 8-4-2020)