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109.01.1-6. Application Procedure.

AR ADC 109.01.1-6Arkansas Administrative Code

West's Arkansas Administrative Code
Title 109. Development Finance Authority
Division 01. Economic Development
Rule 1. Rules and Regulations (Refs & Annos)
Ark. Admin. Code 109.01.1-6
109.01.1-6. Application Procedure.
Currentness
(a) The Authority in its sole and absolute discretion shall determine when an application is complete.
(b) It shall be the responsibility of the lender to submit a complete application.
(c) The Committee shall consider the application expeditiously as possible after a complete application is received with the goal of processing applications within five business days.
(d) The Committee will review an application based on the following criteria and considerations:
(1) An application will not be approved unless the Committee determines that there is a reasonable prospect that the borrowers will repay a loan according to its terms.
(2) An application will only be approved to the extent, in terms of amount, percentage and period of insurance, that it is prudent for the Authority to provide such amount, percentage and period of insurance and that such amount, percentage and period of insurance is necessary to complete the financing.
(3) No application will be approved unless the Committee determines that the insured loan will be serviced by a financial institution as required by the Loan Agreement.
(4) No application will be approved unless the Authority determines that the borrower is eligible and the insured loan proceeds will be used in connection with an eligible purpose.
(5) No application will be approved unless the Committee determines that the application is complete and that information sufficient to make an informed decision on the application has been received.
(6) In reviewing applications, the Committee will consider the following, as applicable:
(i) The extent to which the borrower demonstrates need for an insured loan.
(ii) The economic feasibility of the business endeavor as evidenced by the borrower's present and past financial situation and business experience and the general reasonableness of the business proposal (contract) and financial projections for the future.
(iii) Whether the borrower and any guarantors have satisfactory credit histories.
(iv) Whether the borrower has sufficient capital and other resources to complete the contract as planned, and the amount and source of equity contributed.
(v) The adequacy of the security offered for the loan.
(vi) The extent to which the business contributes to local economic development and employment.
Current with amendments received through February 15, 2024. Some sections may be more current, see credit for details.
Ark. Admin. Code 109.01.1-6, AR ADC 109.01.1-6
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