Ala. Admin. Code r. 305-5-4-.06
Current through Register Vol. 43, No. 1, October 31, 2024
Section 305-5-4-.06 - Rules And Procedures(1) Release of Funds (a) The Department may obligate a portion of the grant funds as directed by the committee when the regional planning and development commission designated to receive these funds demonstrates that the following criteria have been met: 1. The regional planning and development commission has established a regional RLF committee, or related entity, to oversee the loan approval and recapture process;2. The regional planning and development commission, and/or its committee, has developed and properly adopted its operational rules and procedures for making, servicing, and/or conducting other related revolving loan fund activities under the purposes of this ACT;3. The regional planning and development commission, and/or its committee, if so designated, has employed and/or secured contract personnel with sufficient training or skill in business loan processing and analysis including conducting all preliminary assessments necessary to make recommendations for loan approval or denial to its committee, close and service the loans upon regional RLF committee approval, and manage recaptured funds until such time as the funds are reissued;4. The regional planning and development commission has developed, for distribution, its revolving loan fund application review and approval process; and5. The regional planning and development commission has, or has applied for base funds to augment the state fund grants wherein the base funds will provide at least a 1:1 ratio with the state funds. The Department may issue a conditional letter of commitment to facilitate this process.(b) The revolving loan fund grants appropriated by the State of Alabama to the Department for the purposes of this ACT are not sufficient to fund the establishment of all regional planning and development commission's revolving loan fund programs. The Committee shall determine which regional planning and development commissions shall receive the conditional letter of commitment, and the state funds from the Department.(c) The state funds shall be released to the regional planning and development commissions upon receipt of an invoice along with certification that the regional planning and development commission, and/or its committee, has base funds available to match the state funds; or a grant award, or binding agreement of commitment to match the state funds; and is prepared to issue a loan to a specific business entity. However, after the regional planning and development commission has received a commitment for its match, the Department may, with Committee approval, release the state funds for use in the Regional RLF in the absence of an impending loan to a specific business entity.(2) Revolving Loan Fund Policies (a) The regional planning and development commissions shall develop rules and procedures that are consistent with the Department's rules and procedures as provided below: 1. Regional RLFs shall be used for loans and/or loan guarantees in cooperation with private sector lending institutions. Regional RLFs used to finance a project wherein the primary funding is provided by a private institution shall not exceed a ratio of 1:1 (regional RLF vs. private funds).2. Regional RLFs appropriated by the state may be used as a gap financing with other revolving loan fund programs as well. However, when used with such base funds or programs, the regional RLFs shall take a lateral position with respect to collateral and repayment requirements. In the event the regional RLF committee jointly funds a project with another federal agency, foundation, or other entity, the ratio shall be at least 1:1 (federal or foundation funds vs. regional RLFs).3. The relocation of jobs from one intrastate labor market to another will be prohibited. A job cost ratio of one job (created or retained) to $15,000 of regional RLF monies (1:515,000) shall be maintained.4. Any and all rules and procedures of the regional RLF committees, or related entities, shall be subject to the approval of the Department and the Committee.5. Within 10 days after the closing of an initial loan, and within 30 days after the closing of subsequent loans, the regional planning and development commission shall provide the Department with a basic description of the transaction. In addition, the regional planning and development commissions shall provide the Department with a semiannual report on the status of recaptured funds.(3) APPEALS. The regional planning and development commissions may appeal a decision or ruling pertaining to the rules and/or procedures herein established by the Department, and as approved by the Committee. The appeal shall be made to the Committee. However, such appeal must to submitted to the executive secretary of the Committee within 15 days from the receipt of an adverse finding by the Department.
Authors: David S. Barley, Jr.; Dr. Don C. Hines; Regional Revolving Loan Policy Committee.
Ala. Admin. Code r. 305-5-4-.06
Filed November 19, 1990; effective December 24, 1990. Amended Filed August 21, 1991; effective September 25, 1991.Statutory Authority: Act 90-650, Legislature of the State of Alabama.