Small Business Forgivable Loan Agreement

ADVERTISEMENT

SMALL BUSINESS FORGIVABLE LOAN AGREEMENT
This Agreement is entered into as of the ___ day of _____________, 20__ among the
City of Muscatine, Iowa (the “City”), _________________________[Name of Business] (the
“Company”) and __________________________ [Name of individual guarantor] (the
“Individual(s)” and together with the Company, the “Borrower”).
WHEREAS, the City, pursuant to and in strict compliance with all laws applicable to the
City, and in particular the provisions of Chapter 15A and Chapter 403 of the Code of Iowa, has
established its Small Business Forgivable Loan Program (the “Program”) in order to make
available public funds for the support of economic development initiatives and business
development in the community; and
WHEREAS, the Program includes the funding of forgivable economic development
loans to private entities for the funding of improvements to local businesses and business
facilities; and
WHEREAS, this Small Business Forgivable Loan Agreement (the “Agreement”)
between the City and the Borrower has been prepared to facilitate the funding of a forgivable
economic development loan in the maximum amount of $____________ (the “Forgivable
Loan”) from the City to the Borrower in connection with certain improvements to be undertaken
by the Borrower (the “Improvements”), which Improvements are described on Exhibit A hereto;
and
WHEREAS, the Improvements are for the benefit of the Borrower’s business (the
“Business”), which Business and the regular operations thereof are described on Exhibit B
hereto; and
WHEREAS, Chapter 15A of the Code of Iowa authorizes cities to provide grants, loans,
guarantees, tax incentives and other financial assistance to or for the benefit of private persons;
NOW THEREFORE, the parties hereto agree as follows:
A.
Borrower’s Covenants
1.
The Borrower agrees to undertake and complete the Improvements by
______________________ (the “Completion Date”), subject to any extensions granted to the
Borrower by the City, and to use the proceeds of the Forgivable Loan solely in connection
therewith. All improvements must be completed by the first anniversary of the origination of the
loan.
2.
The Borrower agrees that it will own and operate the Business as described on
Exhibit B throughout the term of the Forgivable Loan, aside from any interruptions in regular
operations resulting from construction of the Improvements and with any exceptions from such
regular operations as are agreed to in writing by the City.
.

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Business
Go
Page of 7