(A) Eligible projects.
(1) Land costs. Any related costs associated with the acquisition of land or structures for industrial or commercial use.
(2) Building costs. Any costs related to the repair, renovation, rehabilitation or construction of properties for industrial or commercial use.
(3) Machinery and equipment costs. Costs associated with the purchase, overhauling and installation of equipment of a commercial or industrial nature.
(4) Infrastructure development costs. Costs required by a need to install, construct or repair infrastructure facilities required for the creation of new jobs of an industrial or commercial nature.
(5) Refinancing existing debt. Use of SEDF assistance for the purpose of rescheduling existing debt in order to create or retain industrial and commercial employers.
(6) Other project activities not specifically excluded below.
(B) Ineligible projects.
(1) Rolling stock, i.e., trucks, automobiles, etc.
(2) Capital equipment with a usable life of less than three (3) years.
(3) Speculative building, as defined as any project which the developer does not intend to retain ownership for at least three (3) years.
(4) Working capital.
(5) Assistance to business located outside the city limits.
(C) SEDF underwriting criteria.
(1) The Fund will rely on short term loans, secured by promissory notes, liens and mortgages, as appropriate. Personal guarantees will be required on all corporate loans, as appropriate.
(2) Financial assistance from the Fund will not exceed fifty percent (50%) of the total project cost and all projects receiving assistance from the Fund shall have a minimum equity position from the applicant of ten percent (10%) of project costs. Equity shall be accepted on a "cash-in" basis only.
(3) Priority shall be given to applicants proposing to create or retain one (1) job per two thousand five hundred dollars ($2,500.00) in assistance provided by the Fund.
(4) The SEDF may make loans subordinated to other lenders and the terms of any SEDF loans shall not exceed that of the first mortgage lender. This decision can be waived if necessary.
(5) Rates and terms for each loan or other form of assistance provided by the Fund shall be negotiated on an individual basis and provide adequate flexibility to meet financial needs which vary from project to project.
(6) Priority shall be given to applicants proposing projects located within the boundaries of the Shelbyville Historic District.
(7) A processing fee of one hundred dollars ($100.00) will be charged to all applicants to the Fund. This fee shall be charged only to those applicants actually submitting an application for the review and consideration of the SEDF Board of Management.
(Ord. 87-006, passed 1-28-87; Am. Ord. - -, passed 4-9-89)