2007 RES R-129-07 - Laserfiche WebLink

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Agreement with Southern California Reinvestment, CDFI FY 2007-2008 Page2 of 7 with a "storefront" located in Colton, in good standing with the city (no delinquent utility bills, outstanding debt or code violations), be able to document a two-year history (filed as a business on federal tax returns) and any other documentation required by the Loan Committee. (d) Assisted Business or Borrower: A Colton business that enters into an agreement with the Lender for a guaranteed loan provided by Lender. (e) Loan Amount: The amount of any loan made by Lender to a Colton business and which loan is subject to his Agreement. 2. LENDER AGREES AS FOLLOWS: (a) Lender shall forthwith undertake and provide financial services in accordance with Federal, State, and City statutes, regulations, ordinances and guidelines, all to the reasonable satisfaction of the City. (b) Lender shall provide City quarterly reports that detail Lender's activities in a mutually agreeable format. (c) Lender shall, at Lender's sole cost and expense, secure and hire such other persons as may, in the opinion of Lender, be necessary to comply with the terms of this Agreement. In the event that any such other persons are retained by Lender, Lender hereby warrants that such persons shall be fully qualified to perform such services required hereunder. Lender further agrees that no subcontractor shall be retained by Lender to perform Lender's services hereunder except upon the prior written approval of the City. Lender further agrees that Lender nor any of its employees that clients will not be actively recruited as new customers for their personal business and that there will be no business relationship for a period of at least one year from the last date of contract under this program. (d) Lender guarantees and promises to deposit City Guarantee funds into an interest bearing Certificate of Deposit in accordance with the terms of this agreement. 3. CITY AGREES AS FOLLOWS: (a) City guarantees and promises to pay to Lender in accordance with the terms of this Agreement, the amount which is the lesser of. (1) $20,000 or (2) twenty -percent (20%) of the total Loan Amount for each approved loan guarantee within 10 days of notification by Lender of Business loan approval. (b) The City will pay Lender a $5,000 administration fee to cover program marketing expenses, pre -loan packaging assistance, loan servicing, reporting, follow-up collection work, forty-eight hour pre -approval turnaround on initial loan packages, two seminars on "Loan Packaging Basics", management of technical assistance training for borrowers and other services related to the performance of the services identified in this Agreement and as detailed in (c) below. Lender agrees to provide a quarterly activity report detailing the activities identified in this paragraph that were completed during the previous quarter.