California Code of Regulations › Title 25 - Housing and Community Development › Division 1 - Housing and Community Development › Chapter 7 - Department of Housing and Community Development Programs › Subchapter 18 - Child Care Facilities Financing Program › Article 4 - Direct Loan Program › Section 8269 - Application Procedure

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
An applicant shall apply for a direct loan to the
						department or its contractor by providing the department or its contractor with
						all of the information set forth in this section. Said information shall be
						submitted in a format acceptable to the department or its contractor and shall
						be submitted with a certification under penalty of perjury that the information
						provided is true and correct to the best knowledge of the applicant.
						Information submitted in support of a direct loan request shall be accepted on
						an "over-the-counter" basis as long as funds remain available. In order for a
						request for a direct loan to be considered for further processing, the
						applicant shall submit the following information:
(a) A description of the project, including:
					 number of child care spaces to be created or preserved by the proposed project;
					 number of proposed jobs to be created by the project; identification of whether
					 the project is located in an urban or rural area; and identification of which
					 priorities set forth in section 8254, subdivisions (a) and (b) shall be met by
					 the project.
(b) Applicant business
					 information including: name of business, mailing address, telephone numbers,
					 contact person, federal tax identification number, date business was
					 established, and form of business organization.
(c) Loan information including: requested
					 loan amount and term, requested use of funds, and a description of collateral
					 offered to secure repayment of the loan.
(d) Facility information including: name of
					 facility, address of facility, number of years at that location, and
					 ownership/rental data for facility.
(e) Name, address, telephone number, title
					 and percent of ownership, as applicable, for principals of the
					 business.
(f) Business banking and
					 financial contact information.
(g)
					 Credit history for the business and principals of the business regarding
					 bankruptcies, judgments, liens, foreclosures, repossessions, criminal
					 penalties, and potential financial liabilities that could become due and
					 payable during the loan term, as applicable.
(h) Description of all sources and uses of
					 funding for the project.
(i)
					 Completed environmental survey. After review of the survey, the department or
					 its contractor may request additional information concerning the project if it
					 appears that hazardous materials may be present in, on, under, or around the
					 project or project site.
(j) A
					 signed and dated copy of business financial statements, including all
					 schedules, for the last three (3) operating years and signed and dated current
					 business financial statements, including all schedules, dated within ninety
					 (90) days of the date the loan application is filed.
(k) Signed and dated complete copies of
					 business federal tax returns for the last three (3) years, including all
					 schedules.
(l) A copy of the most
					 recent business formation documents (articles and by-laws for corporations, and
					 partnership agreement for partnerships).
(m) A corporate or governing body resolution
					 granting authority to apply for direct loan funds.
(n) A signed and dated current personal
					 financial statement and signed and dated complete copy of the most recent
					 federal tax return, including all schedules, for each owner that owns twenty
					 percent (20%) or more of the business, and for each guarantor.
(o) Signed and dated two (2) years of
					 financial projections for the applicant's business.
(p) Evidence that the applicant has site
					 control where the project will be undertaken. Evidence of control shall be
					 demonstrated by submittal of one of the following:
(1) In the case of fee ownership, a certified
					 copy of a recorded grant deed showing ownership in the name of the
					 applicant;
(2) In the case of an
					 option to purchase, a certified copy of an option agreement granting an option
					 to purchase the facility to the applicant; or
(3) In the case of a lease, a copy of the
					 lease agreement between the applicant and the owner with a term, including any
					 permitted extensions or renewals, at least equal to the term of the requested
					 loan plus one year, and containing a provision permitting the applicant to make
					 physical changes to the property and improvements as contemplated by the
					 project.