Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 9 - Micro Loan Program › Chapter 75 - Loan Policies › Section VII-7505 - Application Process

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				  Applicant is required to first contact a financial lending institution that is
				  willing to entertain such a loan with the prospect of additional credit support
				  provided by a LEDC guarantee or a participation and complete the application
				  process. An applicant may also apply to LEDC directly for loan consideration,
				  provided it is based upon documented eligibility as established as follows.
				  Only after rejection by at least two lending institutions for participation on
				  the basis of either a loan participation or a loan guarantee shall an applicant
				  be eligible to be considered for a direct loan by LEDC. Such applications may
				  be forwarded directly to LEDC.
B.
				  Information submitted to LEDC with the application representing the applicant's
				  business plan, financial position, financial projections, personal financial
				  statements and background checks will be kept confidential to the extent
				  allowed under the Public Records Law,
				  R.S.
				  44:1 et seq. Confidential information in the
				  files of LEDC and its accounts acquired in the course of duty will be used
				  solely by and for LEDC.
C.
				  Submission and Review Policy
1. A completed
				  Louisiana Economic Development Corporation application form along with
				  information identified by LEDC as appropriate must be submitted to LEDC.
				  Applications will be processed, with decisions confirmed promptly.
2. Economically disadvantaged businesses
				  applying for assistance under that provision will have to submit certification
				  from the Division of Economically Disadvantaged Business Development Office of
				  the Department of Economic Development along with the request for financial
				  assistance.
3. Businesses applying
				  for consideration under the disabled persons provision shall submit adequate
				  information to support the disabled status.
4. LEDC staff will review the applications
				  for completeness and submit only complete packages for analysis. Any
				  applications not receiving approval in the initial analysis process shall be
				  individually reviewed and exceptions to underwriting criteria noted. The LEDC
				  staff will report to the screening committee monthly those applications
				  approved, and those not recommended for approval with reasons.
5. Loans guaranteed or participated in by
				  LEDC must qualify under LEDC pre-approved underwriting criteria using
				  standardized LEDC documentation. The originating bank is responsible for all
				  loan closing documentation. Closing will occur only after a site visit by an
				  LEDC staff member or designated representative.
6. Direct loans by LEDC must qualify under
				  LEDC pre-approved underwriting criteria, or be approved by the board of
				  directors as an exception to such criteria. Such loans will be closed by LEDC
				  or its designated agents using standardized LEDC documentation.
7. Only those applicants and/or their
				  designated representatives asked to be present by the LEDC staff need to be
				  present for the screening committee.
8. The board of directors will review the
				  results of all applications processed and screened. Loans recommended for
				  approval by the LEDC staff as exceptions to standard underwriting criteria will
				  be presented to the screening committee of the board for approval. Loans
				  approved under standard underwriting procedures requiring direct LEDC funding,
				  LEDC guarantees or participation shall be approved by LEDC in accordance with
				  established policies and procedures.
9. The applicant will be notified promptly
				  from date accepted for processing by mail of the outcome of the
				  application.
10. A LEDC commitment
				  letter, standard guaranty or participation agreement will be mailed to the bank
				  promptly after approval by the LEDC staff applying standardized evaluation
				  processes.