Wyoming Administrative Code › Agency 085 - Business Council › Sub-Agency 0004 - Economic Planning And Partnership Challenge Loan Program › Chapter 1 - WYOMING PARTNERSHIP CHALLENGE LOAN PROGRAM › Section 1-7 - Terms, Conditions, and Repayment

Current through July 13, 2024
a. In making loans,
				the Council shall:
(i) establish an up-front
				fee and/or a per annum administrative fee of at least one percent (1%) each of
				the total loan amount; this fee may be reduced or waived upon approval of the
				Board of Directors for "guarantee loan participations";
(ii) establish a commitment fee of 0.25% per
				annum of the amount of the unused commitment; to be assessed at the first
				anniversary of the loan date;
(iii)
				establish a commitment period for disbursement of loan proceeds not to exceed
				two years;
(iv) set an interest
				rate (minimum 4% per annum) after considering:
A. the dollar-for-dollar match;
B. the proposed source(s) and use(s) of the
				funds, and specifically, the percentage of owner's equity;
C. other interest rates associated with total
				project financing;
D. projected
				cash flows and business plan of the Borrower as well as the Business;
E. credit risk of the community development
				organization or state development organization and the underlying Third-party
				loans;
F. current and projected
				market interest rates; and
G.
				collateral and security package.
(v) establish the terms of repayment not to
				exceed ten (10) years, with an additional ten (10) year renewal upon approval
				by the Board of Directors of the Council;
(vi) establish an amortization not to exceed
				twenty (20) years;
(vii) establish
				that whenever a draw-down of funds is requested by the Borrower, provide to the
				Council for each Third-Party loan under consideration by the Borrower, a
				written loan application made by the Borrower and approved by its board, which
				is a detailed due-diligence analysis on the creditworthiness of the proposed
				Third-party loan. Such loan application shall at a minimum address and analyze
				the proposed financings: sources and uses of funds, commercial viability of the
				business/project, risks and mitigants, rationale for lending (i.e. why the
				Business can not obtain funding from the private sector and why the public
				sector should assume the risk), economic development impact, the collateral
				package, terms of the security agreement, and terms and conditions of the
				Third-party loan, etc;
(viii)
				establish that whenever a draw-down of funds is requested by the Borrower,
				provide to the Council for each Third-party loan under consideration by the
				Borrower, unless waived by the Council, the Business' business plan, three (3)
				years of historical financial statements and current year-to date financial
				statements; three (3) years of tax statements; and pro-forma financial
				projections (income statement, balance sheet, and cash flow
				statement);
(ix) establish other
				terms and conditions determined to be necessary by the Board of Directors, such
				as, that all Third-party loans shall be reviewed by and are subject to the
				approval of the Council and the terms of the loan documents, prior to the
				release of funds to the Borrower, as well as other customary and prudent terms
				and conditions;
(x) require written
				permission from the Borrower agreeing to allow the Wyoming Department of Audit
				and an auditor designated by the Board of Directors to examine its books and
				records, upon request;
(xi) reserve
				the right to terminate the agreement to ensure funds loaned or committed are
				invested by the community development organization or state development
				organization in local economic development within twenty-four (24) months;
				and
(xii) require all statutory
				requirements regarding the loan be met.