Mississippi Administrative Code › Title 6 - Economic Development › Part 4 - Community Services › Chapter 3 - Amended Local Governments Capital Improvements Revolving Loan Program (CAP) › Rule 6-4-3.4 - General Project Requirements

Current through June 25, 2024
A. The Applicant
				must fulfill the requirement of the standard application, which must be
				Submitted to MDA for review and acceptance.
B. The Applicant may only submit one project
				per application.
C. The
				construction or renovation of economic development buildings for speculative
				purposes requires a 50/50 match. The match must be in cash or in-kind
				assets.
D. The Applicant may not
				use the funds to retire any debts, except for current construction type loans
				directly related to the project.
E.
				Recreational sites acquired and/or developed with CAP assistance cannot be
				converted to uses other than their original scope/intent during the life of the
				loan.
F. The Applicant must not
				purchase a building or facilities from individual(s), company(ies), or
				corporation(s) with CAP funds, and subsequently lease them to the seller
				(previous owner) within 5 years of acquisition.
G. The Applicant may not purchase a building
				that has been constructed in the last six months.
H. The Applicant may not purchase an existing
				building or facility for more than the appraised value.
I. The Applicant may not utilize CAP proceeds
				to make a loan to any private entity, public entity, or individuals.
J. If applicable, the Applicant must obtain
				written approval from the MDA-appointed legal counsel stating that the project
				qualifies for a tax-exempt status. The associated costs are the responsibility
				of the Applicant and will be billed directly by the appointed legal
				counsel.
K. Before releasing CAP
				funds, the Applicant must provide title insurance on all real property
				acquisitions or title opinion on all other projects from the Applicant's
				attorney.
L. The Applicant must
				follow all procurement and purchase laws. If an applicant has not advertised
				for bids within 120 days after receiving loan approval, the state will have the
				option to recall the CAP funds.
M.
				The Applicant must comply with all nondiscrimination and equal opportunity
				requirements. MDA encourages the use of Minority-owned Business Enterprises
				("MBE") and Women-owned Business Enterprises ("WBE").
N. If the CAP funds are used in a joint
				project with other funds, then the CAP may be subject to the other funds'
				regulations.
O. If applicable, an
				access road for industrial development must follow state requirements. CAP loan
				funds are not to be utilized on major highways.
P. The Applicant must retain title and
				maintain, preserve and keep the project in good working order and condition
				until the CAP loan is satisfied.
Q.
				The Applicant may not utilize CAP proceeds for the purchase of construction
				related equipment, rolling-stock type equipment, or any equipment not integral
				to the operation of the facilities or structure being purchase, constructed or
				repaired.
Miss. Code Ann
				  §
										57-1-301
				  et seq (Rev. 2014).