Kan. Admin. Regs. § 110-40-6 - Criteria for approval of financial assistance
(a) Need
for financial assistance. A need for financial assistance shall be deemed to
exist where credit or loans are otherwise not available for Kansas export
transactions. In evaluating the availability of credit or loans the following
factors shall be taken into consideration by the department:
(1) Exporter's resources. Consideration shall
be given to whether the desired financing appears available, in whole or in
part, to the exporter on reasonable terms based upon its own resources,
including the exporter's bank credit lines, issuance of new capital, sale of
assets at a fair price, and the personal credit or other resources of the
owners and principal shareholders of the exporter.
(2) Alternative sources of assistance.
Consideration shall also be given to whether the requested financial assistance
appears available, in whole or in part, through other governmental sources such
as the United States small business administration or eximbank. The exporter
may be directed to these sources or to seek coparticipation from these sources,
as appropriate, prior to further consideration of the application.
(b) Reasonable risk and likelihood
of repayment. Financial assistance shall only be available for loans which
represent reasonable risks and which have a sufficient likelihood of repayment.
In making these judgements, the following factors shall be considered by the
department:
(1) the credit history and
financial condition of the exporter;
(2) the collateral and other sources of
guarantee or insurance securing the loan or credit;
(3) the terms of the sale and projected
earnings from the Kansas export transaction;
(4) the capacity of the exporter to perform
commercially, especially in accordance with the commercial terms and conditions
of the Kansas export transaction;
(5) the security of the payment terms of the
Kansas export transaction, to the extent that the exporter's loan repayment is
dependent upon collection of the foreign receivable; and
(6) the lender's ability to evaluate,
perform, and service the loan or credit, to make reports as required by these
rules, and to collect the loan upon default.
(c) The limits in K.S.A. 1989 Supp.
74-5072(a). The criteria for approval of financial assistance shall include the
percentage limitations in K.S.A. 1989 Supp. 74-5072(a).
Notes
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