General Loan Limitations

General Loan Limitations. A. Community Development related projects are defined as non-job creating projects that benefit a need in a community unrelated to economic development. Project loan awards will be limited to $1,250,000.00 per project or $1,250,000.00 per applicant, per calendar year. Loans for construction, repair and renovation of parks, swimming pools and recreational and athletic facilities shall not exceed $250,000.00 per project and are limited to one active project per applicant (one project in construction). B. Economic Development related projects are defined as projects that promote full time private sector job creation and/or retention. One full-time job is the equivalent of a minimum of 1,820 annual work hours. Project Awards will be limited to: not more than $20,000.00 per job or a maximum loan amount of $2,500,000.00, whichever is less. C. Up to 8% of the principal loan amount may be used for design work, i.e., engineer or architect excluding brownfield projects. Engineering and/or architectural costs above 8% must be paid from other funding sources. D. CAP Loan funds cannot be used for project signs, administrative costs, legal or appraisal fees. E. All loans have annual interest computed daily on the outstanding loan balance. Daily interest begins to accrue at the time of the first disbursement. F. The Applicant will be required to expend all CAP loan funds within two years from the date of loan approval, unless a waiver, at MDA’s discretion, is granted upon good cause shown. If the funds are not expended within the two years, MDA will have the option to adjust the loan to the actual disbursements and de-obligate the remaining funds.