Louisiana Administrative Code › Title 19 - CORPORATION AND BUSINESS › Part VII - Louisiana Economic Development Corporation › Subpart 1 - Small Business Loan Guaranty Program › Chapter 1 - Loan Guaranty Policies › Section VII-105 - Application Process

Current through Register Vol. 50, No. 6, June 20, 2024
A. Any
				  applicant/borrower(s) applying for either a loan guarantee, line of credit
				  guarantee, or loan participation will be required first to contact a financial
				  lending institution (a bank or other commercial lending entity) that is willing
				  to entertain, originate, process and service such a loan or line of credit with
				  the prospect of a guaranty or a participation, and the lender will then contact
				  LEDC for qualification and shall submit a complete application to LEDC for
				  review and approval. The financial institution shall also be responsible for
				  obtaining assurances of eligibility from each borrower.
B. Information submitted to LEDC with the
				  application representing the applicant's/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 submission and review policies shall be followed.
1. A completed Louisiana Economic Development
				  Corporation application form must be submitted to LEDC.
2. Small and Emerging Businesses (SEBs)
				  applying for assistance under that provision 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.
3. Businesses applying for consideration
				  under the disabled person's business enterprise provision shall submit adequate
				  information to support the disabled status.
4. The applicant/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 analysis and evaluation of
				  the application, independent of the lending institution's analysis and
				  evaluation.
5. The applicant/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.
6. LEDC staff
				  will review the application and analysis, and then make recommendations. The
				  staff will work with the applicant/lender on terms of the loan, including
				  interest rate, maturity, collateral, other loan terms, and any LEDC loan
				  stipulations or requirements.
7.
				  The LEDC's board screening committee or the board's other designated committee
				  will review only the completed applications submitted by LEDC staff and may
				  approve or disapprove applications within its authority as established by the
				  LEDC board, or will make recommendations to the LEDC board.
8. The applicant/borrower(s) or their
				  designated representative, and the loan officer or a representative of the
				  lending institution are not required to attend the board screening committee or
				  other designated committee meeting unless requested by LEDC or its staff to do
				  so.
9. The applicant/borrower(s) or
				  their designated representative, and the loan officer or a representative of
				  the lending institution shall be required to attend the LEDC's board of
				  directors meeting wherein the application will be considered by the
				  board.
10. LEDC's board of
				  directors, the board screening committee, or the board's other designated
				  committee that has considered the application within its authority has the
				  final approval authority for such applications.
11. The applicant/borrower or the lending
				  institution will be notified within five (5) business days by mail or email of
				  the outcome of the application process.
12. An LEDC commitment letter, including
				  LEDC's terms, and any stipulations or requirements, will be mailed or e-mailed
				  by LEDC staff to the lending institution within five business days of approval
				  by the LEDC Board or its committee.