Wyoming Administrative Code › Agency 085 - Business Council › Sub-Agency 0017 - Wyoming Partnership Challenge Loan Program › Chapter 1 - GENERAL PROVISIONS › Section 1-7 - Default Terms, Conditions, and Repayment

Current through July 13, 2024
(a) In making
				loans, the Council shall:
(i) Establish an
				up-front fee of at least one percent (1%) each of the total loan
				amount;
(ii) Establish a commitment
				period for disbursement of loan proceeds not to exceed three (3)
				years;
(iii) Set an interest rate
				(minimum 3% per annum) for all loans, except Large Project Loan(s) in Chapter
				9, after considering:
(A) The proposed
				source(s) and use(s) of the funds, and specifically, the percentage of owner's
				equity;
(B) Other interest rates
				associated with total project financing;
(C) Projected cash flows and business plan of
				the Borrower as well as the Business;
(D) Credit risk of the community development
				organization or state development organization and the underlying third-party
				loans;
(E) Current and projected
				market interest rates; and Collateral and security package.
(iv) Establish the terms of
				repayment of the loan, not to exceed ten (10) years, with an additional ten
				(10) year renewal period upon approval by the Board of Directors of the
				Council, except for Large Project Loans in Chapter 9;
(v) Establish an amortization not to exceed
				twenty (25) years;
(vi) 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 sources of financing: sources and uses of funds, commercial
				viability of the business/project, risks and mitigants, rationale for lending,
				economic development impact, the collateral package, terms of the security
				agreement, and terms and conditions of the third-party loan;
(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, 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 including the Borrower's income statement,
				balance sheet, and cashflow statement;
(viii) Establish other terms and conditions
				determined to be necessary by the Board of Directors prior to the release of
				funds to the Borrower, as well as other customary and prudent terms and
				conditions;
(ix) 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;
(x) 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 thirty-six (36) months;
				and
(xi) Require all statutory
				requirements applicable to the loan be met.