Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 13 - Alaska Industrial Development and Export Authority › Chapter 102 - New Markets Tax Credit Assistance Guarantee and Loan Program › 3 AAC 102.030 - Application process

Current through May 31, 2024
(a) Applicants for NMTC leverage loan
				products must first apply to the authority for a loan guarantee that is
				intended to induce a private lender to make a leveraged loan into the NMTC
				transaction, In the event that the applicant cannot obtain a loan on
				commercially reasonable terms even with the existence of the guarantee, the
				applicant may request that the authority make the loan.
(b) To apply for NMTC leverage loan products,
				an applicant shall file with the authority a completed application on a form
				provided by the authority and shall include or attach the following
				information:
(1) a letter of transmittal
				stating the amount of the guarantee or loan being requested and intended use of
				the loan proceeds;
(2) a financial
				statement from each applicant, including each member of a partnership or other
				association that constitutes the applicant, or, if the applicant is a
				corporation, each shareholder owning 20 percent or more of any outstanding
				shares;
(3) a business financial
				statement;
(4) a project
				development schedule, if applicable;
(5) evidence of insurance, unless waived by
				the authority; the applicant shall obtain insurance coverage for the
				improvements on the real property from responsible companies in such amounts
				and against such risks as is satisfactory to the authority, and an American
				Land Title Association title insurance loan policy is required if real property
				is involved;
(6) a statement of
				projected income and expenses for the following year's operating
				plan;
(7) the applicant's profit
				and loss statement;
(8) a projected
				profit and loss statement;
(9)
				applicant background information;
(10) credit authorizations for at least three
				of the applicant's creditors;
(11)
				authorizations to verify financial information and other consents to release
				information;
(12) signed copies of
				the applicant's federal income tax returns for the preceding three years,
				including returns for each member of a partnership or other association, and
				for additional years if requested by the authority;
(13) a description and evaluation of any
				collateral to be used to secure the guarantee:
(A) if the NMTC financing is to be used to
				finance real property, a written appraisal report acceptable to the authority
				estimating the fair market value of the real property; the appraisal shall be a
				self-contained appraisal report prepared in accordance with the most current
				edition of the Uniform Standards of Professional Appraisal Practice established
				by the Appraisal Standards Board of The Appraisal Foundation;
(B) if the NMTC financing is to be used to
				finance tangible personal property, an appraisal in a format acceptable to the
				authority prepared by an appraiser who is acceptable to the
				authority;
(14) any
				documents needed for the authority to make a finding that the borrower has
				adequate projected cash flow to service the debt;
(15) an environmental risk assessment
				satisfactory to the authority, followed by an environmental audit if required
				by the authority; and
(16) any
				other information the authority considers necessary to evaluate the borrower
				and the project.