LD 1962
pg. 2
Page 1 of 5 An Act to Establish the State Revolving Loan Fund for Small Business Initiative... Page 3 of 5
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LR 1703
Item 1

 
more towns or to corporations formed by 3 or more municipal
development corporations.__To be eligible as a grantee corporation
under this fund, the development corporation must meet the criteria
established in section 1026-K, subsection 2.

 
4.__Disbursement from fund.__If an application is approved,
the corporation shall establish a separate loan account for that
project into which funds are deposited upon receipt from the
department.__When requesting funds, the corporation shall certify
that the funds will be used for eligible projects.__The
department may release this money only when it accepts the
certification.

 
A.__The corporation shall review applications for financial
assistance under this section, determine their feasibility
and make recommendations to the corporation, which must
approve or reject an application by a majority of votes.__
Corporation decisions are final.

 
B.__The corporation shall transfer loan repayments to the
department on a semiannual basis.__The department shall
deposit the repayments as follows:__100% of the principal
and 50% of the interest net of administration charges into
the fund established under this chapter; and 50% of the
interest net of administration charges into the General
Fund.

 
5. Conflicts of interest.__An officer or employee of the
corporation may not have any interest in a project financed under
the fund.__Individuals may not participate in the approval
process for a project in which they have an interest.

 
6.__Administrative costs.__The corporation may use interest
earnings not to exceed 5% of each loan annually to cover
reasonable administrative and technical assistance costs.__The
department shall review and approve the corporation's
administrative expenses on an annual basis.__The department may
establish by rule, pursuant to subsection 12, reasonable
administrative fees for administration of the fund and may charge
the administrative fees and expenses to the fund.

 
7.__Financing.__Individual loans from the fund may range from
a minimum of $25,000 to a maximum of $175,000.

 
8.__Eligible projects.__A project may qualify for assistance
if adequate financing from other public and private sources is
not available.__In order to qualify for assistance:

 
A.__The borrower must have committed all reasonably available
resources to the project; have obtained, or attempted to obtain,
financial commitments from other


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