Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 13 - Collateral Support Program › Chapter 91 - SSBCI Collateral Support Program ARPA 2021 › Section VII-9105 - Application Process

Current through Register Vol. 50, No. 6, June 20, 2024
A. Any
				  applicant/borrower(s) applying for either a loan or a line of credit will be
				  required first to contact a CSP participating financial lending entity that is
				  willing to entertain, originate, process and service such a loan or line of
				  credit with the prospect of an LEDC cash collateral deposit, and the
				  participating lender will then contact LEDC for qualification and shall submit
				  a complete application to LEDC for its review, approval and acceptance. The
				  financial lender shall also submit to LEDC the lender's assurances,
				  certifications, representations and warranties, and shall be responsible for
				  obtaining and submitting to LEDC assurances of eligibility, including
				  certifications, representations and warranties from each borrower, all as
				  required by the American Rescue Plan Act of 2021 and the SSBCI.
B. Information submitted to LEDC with the
				  application representing the applicant/borrower's business plan, financial
				  position, financial projections, personal financial statements and background
				  checks will be kept confidential to the extent allowed under the Louisiana
				  Public Records Law,
				  R.S.
				  44:1 et seq. Confidential information in the
				  files of LEDC and its accounts acquired in the course of its duty will be used
				  solely by and for LEDC.
C. The
				  following CSP submission and review policies shall be followed.
1. The participating lender is expected to
				  use its best efforts to provide small Louisiana businesses, SEDI, with the
				  maximum practicable opportunity to participate in the CSP.
2. The participating lender shall request
				  approval from LEDC to become an approved participating lender under the CSP by
				  executing a master lender participation agreement.
3. The borrower's completed Louisiana
				  Economic Development Corporation CSP loan packet must be submitted by the
				  lender to LEDC to include:
a. borrowers
				  completed CSP application and related information and materials.
b. small and emerging businesses (SEBs)
				  applying for assistance under the program will have to submit a copy of the
				  certification from the Louisiana Department of Economic Development's Small
				  Business Services, along with the request for financial assistance.
c. businesses applying for consideration as a
				  SEDI owned business will have to self-certify under conditions in Subparagraph
				  a-c as noted above in §9103 under SEDI-owned business definition.
d. the participating lender shall submit to
				  LEDC its complete analysis and evaluation, proposed loan structure, and
				  commitment letter to the borrower. LEDC staff may do its own review and
				  evaluation of the application packet. The participating lender shall submit to
				  LEDC the same pertinent data that it submitted to the lending institution's
				  loan committee, whatever pertinent data the lending institution can legally
				  supply.
e. lender's and borrower's
				  signed assurances and certifications as required by the U.S.
				  Treasury.
4. LEDC staff
				  will review the application and analysis, and then approve and accept or
				  disapprove and reject the application, if the dollar amount of the loan is
				  within the staff's board approved authority, or make recommendations to the
				  board committees and to the board for approval and acceptance or disapproval
				  and rejection.
5. The LEDC's board
				  of directors, or the board's designated committee, will review only the
				  completed applications and related materials submitted by LEDC staff and may
				  approve and accept or disapprove and reject applications for approval or
				  acceptance or the designated board committee may simply make recommendations to
				  the LEDC board for its decision.
6.
				  The applicant/borrower(s) or their designated representative(s), and the loan
				  officer or a representative of the lender shall be required to attend the
				  LEDC's board of directors meeting wherein the application will be considered by
				  the board; but shall not be required to attend meetings of the LEDC Staff or
				  the designated board committee, unless the LEDC requests their
				  presence.
7. LEDC's board of
				  directors, or the board's designated committee that has considered the
				  application has the final approval and acceptance or disapproval and rejection
				  authority for such applications; except for those loans which shall be within
				  the staff's authority to approve or disapprove, as established by the LEDC
				  board, the staff shall have the final approval and acceptance or disapproval
				  and rejection authority, unless the board overrules the staff's
				  decision.
8. The lender will be
				  notified within three to five business days by mail or e-mail of the outcome of
				  the application process.
9. Funds
				  approved for each CSP application will have a reservation period of 90 calendar
				  days from the approval date.
a. If an approved
				  CSP loan does not close within 90 calendar days from the final LEDC approval
				  date, the reservation period will expire and funds will be released to the
				  general program fund to be used for other CSP requests, unless an extension has
				  been approved by LEDC board or its designated committee, or LEDC
				  staff.
b. Once a reservation period
				  has expired, a lender will need to re-apply and start the application and
				  review process over with a new or up-dated application.