Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 5 - Contract Loans › Chapter 61 - Contract Loan Program › Section VII-6105 - 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 guaranty/participation and complete the application
				  process.
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 the
				  information identified in Attachment A, must be submitted with a $100
				  application fee. Applications will be processed with decisions confirmed
				  promptly.
2. Minority- and
				  women-owned businesses applying for assistance under that provision will have
				  to submit certification from the Minority and Women's Business Enterprise
				  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/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 a LEDC staff
				  member or designated representative.
6. Only those applicants and/or their
				  designated representatives asked to be present by the LEDC staff need to be
				  present for the screening committee.
7. 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 for
				  $100,000 or less approved under standard underwriting procedures requiring a
				  LEDC guarantee/participation shall be approved jointly by the LEDC executive
				  director and deputy director. In the absence of one of those persons, the
				  president of LEDC, or the secretary/treasurer, could additionally approve the
				  loan. All completed applications recommended by staff on loans in excess of
				  $100,000 will be approved by the screening committee and the board.
8. The applicant will be notified promptly
				  from date accepted for processing by mail of the outcome of the
				  application.
9. A LEDC commitment
				  letter and standard guaranty or participation agreement will be mailed to the
				  bank promptly after approval by the LEDC staff applying standardized evaluation
				  processes.