(a) Upon receipt by the Board of the completed application, the Board shall approve a request for a loan when it finds the following requirements are met:
(1) The applicant meets the conditions of eligibility provided in section 3422;
(2) The Board has evaluated the applicant's character, capital, and capacity and finds that the applicant is creditworthy;
(3) The environmental compliance and risks at the project facility support, or do not materially adversely affect, the decision to make the loan;
(4) Guarantee(s), collateral, and the source of repayment are sufficient for the proposed loan; and
(5) Funds are available to meet the funding request.
(b) If any of the conditions and requirements of this section have not been met, the Board shall deny the application and determine what specific actions, if any, the applicant must take to obtain further Board evaluation and review of the application provide the reasons for its denial.
(c) If the Board approves the loan, then the Board shall be authorized to enter into a loan agreement in accordance with section 3423.
(d) If the Board denies the application, the applicant shall have no right to administratively appeal the decision, but may reapply at any time unless the applicant is disqualified from participation in the RUST Program pursuant to pursuant to subdivision (e) of section 3428.
(e) If the Board determines there are not enough RUST loan funds available to fund all approved loans, the Board shall give priority to awarding loans to small businesses that meet the definition of small business specified in subdivision (d) of section 14837 of the Government Code.
Credits
Note: Authority cited: Section 25299.108, Health and Safety Code. Reference: Sections 25299.101, 25299.102, 25299.103 and 25299.104, Health and Safety Code.
1. New section filed 12-3-2004 as an emergency; operative 12-3-2004 (Register 2004, No. 49). A Certificate of Compliance must be transmitted to OAL by 6-1-2005 pursuant to Health and Safety Code section 25299.108 or emergency language will be repealed by operation of law on the following day.
2. Certificate of Compliance as to 12-3-2004 order transmitted to OAL 5-31-2005 and filed 7-13-2005 (Register 2005, No. 28).
3. Amendment filed 3-6-2023; operative 7-1-2023 (Register 2023, No. 10).
This database is current through 4/12/24 Register 2024, No. 15.
Cal. Admin. Code tit. 23, § 3426, 23 CA ADC § 3426
