Alaska Administrative Code › Title 3 - Commerce, Community, and Economic Development › Part 13 - Alaska Industrial Development and Export Authority › Chapter 99 - Commercial and Industrial Financing › Article 3 - Taxable Loan Participation Program › 3 AAC 99.320 - Application for authority participation

Current through May 31, 2024
(a) A business
				  enterprise may apply for a loan under the taxable umbrella loan program by
				  contacting an originator. The originator shall review the proposed use of the
				  loan, the applicant's eligibility, and any other matters the originator may
				  determine necessary. When the originator, with the concurrence of the business
				  enterprise, decides it is appropriate to do so, the originator and the
				  applicant shall prepare an application for authority participation in the
				  loan.
(b) An application for
				  authority participation must be submitted by the originator to the authority
				  along with a non-refundable $1,100 fee. If the authority issues a commitment to
				  purchase a participation in the originator's loan, and the loan commitment
				  issued by the authority is accepted and signed by the originator and borrower
				  and returned to the authority, the non-refundable $1,100 application fee will
				  be credited against the authority's commitment fee as required by
				  3 AAC 99.360(b). The authority may
				  require the originator to include with the application any of the following:
(1) a letter of transmittal;
(2) a loan summary, including originator
				  approval at the appropriate level of authority;
(3) a list of other unpaid loans to the
				  applicant or, if the applicant is not a sole proprietorship, to any member of
				  the applicant's business enterprise, from the state or other public corporation
				  of the state along with applicant certification that each unpaid loan is
				  current and no other loans exist;
(4) a current credit report of the applicant
				  and the guarantor, if any;
(5) a
				  signed current balance sheet and year-to-date profit and loss statement on the
				  applicant, not more than 90 days old from the date of application, fiscal year
				  end balance sheet and profit and loss statement for the prior three years on
				  the applicant; current balance sheet and federal income tax return for the
				  prior two years on all guarantors and co-borrowers;
(6) copies of the applicant's federal income
				  tax returns for the prior three years, if the balance sheet and profit and loss
				  statement required from the applicant in (5) of this subsection are not audited
				  by a certified public accountant;
(7) copies of the earnest money receipt and
				  agreement, option to purchase, contract to purchase, or invoice for purchase of
				  land, land and improvements, or tangible personal property related to the
				  project or qualified energy development;
(8) a copy of a lease or easement for land
				  and improvements related to the project or qualified energy development and, in
				  the case of a hydropower project licensed or to be licensed by the Federal
				  Energy Regulatory Commission, a copy of the documents designating the project
				  boundary with a lease or easement to be completed before closing giving the
				  applicant control of the area within the project boundary;
(9) a detailed description of the project or
				  qualified energy development and a detailed description of real or tangible
				  property to be acquired for the project or qualified energy
				  development;
(10) a detailed
				  estimate of the cost of construction;
(11) an estimate of the number of jobs to be
				  created or retained by this project or qualified energy development;
(12) if the loan is to be secured by real
				  property, a written appraisal report acceptable to the authority estimating the
				  value of the real property
(A) if the total
				  loan amount is equal to or less than $1,000,000, the appraisal may be a summary
				  appraisal report;
(B) if the total
				  loan amount is greater than $1,000,000, the appraisal must be a detailed
				  appraisal describing the information analyzed, the appraisal procedures
				  followed, and the reasoning that supports the analysis, opinions expressed, and
				  conclusions in conformity with current professional standards;
(13) if the loan is for the
				  purchase of tangible personal property, an appraisal in a format acceptable to
				  the authority prepared by an appraiser who is acceptable to the
				  authority;
(14) copies of leases or
				  agreements to lease or renew a lease between the applicant and tenants of the
				  project or qualified energy development, including a list of tenants, lease
				  rates, terms, and options;
(15) a
				  financial feasibility analysis satisfactory to the authority;
(16) an environmental risk assessment
				  satisfactory to the authority, followed by an environmental audit if required
				  by the authority;
(17) if the loan
				  is to finance improvements in energy efficiency, an analysis of the energy
				  efficiencies that are expected to be achieved, including the units of energy
				  expected to be saved over the life of the improvements and the dollar savings
				  expected to be realized; and
(18)
				  any other information considered necessary by the authority to evaluate the
				  application.