085-1 Wyo. Code R. §§ 1-7 - Terms, Conditions, and Repayment
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.
Notes
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