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

Kan. Admin. Regs. § 110-40-6
Authorized by K.S.A. 1989 Supp. 74-5071; implementing K.S.A. 1989 Supp. 74-5071, 74-5072, 74-5073, and 74-5074; effective Oct. 8, 1990.

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