Wyoming Administrative Code › Agency 085 - Business Council › Sub-Agency 0004 - Economic Planning And Partnership Challenge Loan Program › Chapter 3 - LOAN GUARANTEE PROGRAM › Section 3-5 - Terms and Conditions

Current through July 13, 2024
a. In issuing
				guarantees, the Council shall:
(i) establish
				an up-front fee of at least one percent (1%) of the total loan
				amount;
(ii) establish that the
				maximum amount of each guarantee shall not exceed one hundred thousand dollars
				($100,000.00) per loan guaranteed or eighty percent (80%) of any net loan loss
				by the bank, whichever is less;
(iii) establish the terms of the guarantee
				shall not to exceed ten (10) years;
(iv) establish that whenever a guarantee is
				requested by the Business, provide to the Council for each loan guarantee under
				consideration, a written loan application made by the Business and approved by
				the originating bank, which is a detailed due-diligence analysis on the
				creditworthiness of the proposed 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 a traditional Federal
				Guarantee and/or why the State of Wyoming Guarantee provides a greater benefit
				to the Business), economic development impact, the collateral package, terms of
				the security agreement, and terms and conditions of the guarantee,
				etc;
(v) establish that whenever a
				guarantee is requested by the Business, provide to the Council for each
				Guarantee under consideration by the Business, the Business' business plan,
				three (3) years of historical financial statements and current year-to date
				financial statements; three (3) years of tax statements (or in the case of a
				new business the most recent statements since start-up); and pro-forma
				financial projections (income statement, balance sheet, and cash-flow
				statement), for;
(vi) establish
				other terms and conditions determined to be necessary by the Board of
				Directors, such as, that all loan guarantees shall be reviewed by and are
				subject to the approval of the Board of Directors 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;
(vii) require written permission from the
				Business agreeing to allow the Department of Audit and an auditor designated by
				the Board of Directors to examine its books and records, upon
				request;
(viii) require all
				statutory requirements regarding the guarantee be met;
(ix) establish that in the event of default
				by a Business, on a loan made by a bank, guaranteed by the provisions of these
				rules the following shall be met before payment may be requested under
				provisions of the guarantee;
A. written
				notification shall be given to the Council, by the originating bank, that a
				guaranteed loan is in default and that the bank intends to begin
				liquidation;
B. complete
				liquidation of all collateral securing the loan;
C. complete recovery against any personal
				guarantees;
D. a summary of
				liquidation and general ledger of the note documenting net loan loss may be
				submitted to the Council requesting payment under the guarantee;
E. calculation of net loan loss is principal
				less recovery from liquidation of collateral, personal guarantees and accrued
				interest not to exceed sixty (60) days, recovery of attorney fees and other
				legal costs are not allowed to be included in the net loan loss;
F. not withstanding the maximum guaranteed
				payment of one hundred thousand dollars ($100,000.00) or eighty percent (80%)
				of any net loan loss, whichever is less, shall be approved by the Board of
				Directors.