Cal. Code Regs. tit. 25 § 8269

Current through Register 2024 Notice Reg. No. 50, December 13, 2024

Section 8269 - Application Procedure

An applicant shall apply for a direct loan to the department or its contractor by providing the department or its contractor with all of the information set forth in this section. Said information shall be submitted in a format acceptable to the department or its contractor and shall be submitted with a certification under penalty of perjury that the information provided is true and correct to the best knowledge of the applicant. Information submitted in support of a direct loan request shall be accepted on an "over-the-counter" basis as long as funds remain available. In order for a request for a direct loan to be considered for further processing, the applicant shall submit the following information:

(a) A description of the project, including: number of child care spaces to be created or preserved by the proposed project; number of proposed jobs to be created by the project; identification of whether the project is located in an urban or rural area; and identification of which priorities set forth in section 8254, subdivisions (a) and (b) shall be met by the project.

(b) Applicant business information including: name of business, mailing address, telephone numbers, contact person, federal tax identification number, date business was established, and form of business organization.

(c) Loan information including: requested loan amount and term, requested use of funds, and a description of collateral offered to secure repayment of the loan.

(d) Facility information including: name of facility, address of facility, number of years at that location, and ownership/rental data for facility.

(e) Name, address, telephone number, title and percent of ownership, as applicable, for principals of the business.

(f) Business banking and financial contact information.

(g) Credit history for the business and principals of the business regarding bankruptcies, judgments, liens, foreclosures, repossessions, criminal penalties, and potential financial liabilities that could become due and payable during the loan term, as applicable.

(h) Description of all sources and uses of funding for the project.

(i) Completed environmental survey. After review of the survey, the department or its contractor may request additional information concerning the project if it appears that hazardous materials may be present in, on, under, or around the project or project site.

(j) A signed and dated copy of business financial statements, including all schedules, for the last three (3) operating years and signed and dated current business financial statements, including all schedules, dated within ninety (90) days of the date the loan application is filed.

(k) Signed and dated complete copies of business federal tax returns for the last three (3) years, including all schedules.

(l) A copy of the most recent business formation documents (articles and by-laws for corporations, and partnership agreement for partnerships).

(m) A corporate or governing body resolution granting authority to apply for direct loan funds.

(n) A signed and dated current personal financial statement and signed and dated complete copy of the most recent federal tax return, including all schedules, for each owner that owns twenty percent (20%) or more of the business, and for each guarantor.

(o) Signed and dated two (2) years of financial projections for the applicant's business.

(p) Evidence that the applicant has site control where the project will be undertaken. Evidence of control shall be demonstrated by submittal of one of the following:

(1) In the case of fee ownership, a certified copy of a recorded grant deed showing ownership in the name of the applicant;

(2) In the case of an option to purchase, a certified copy of an option agreement granting an option to purchase the facility to the applicant; or

(3) In the case of a lease, a copy of the lease agreement between the applicant and the owner with a term, including any permitted extensions or renewals, at least equal to the term of the requested loan plus one year, and containing a provision permitting the applicant to make physical changes to the property and improvements as contemplated by the project.

(q) If the applicant will be pledging any other real property as security for repayment of the direct loan, a certified copy of the grant deed for that property.

(r) A copy of the current child care license, application for a license, or amendment to a license, and any other business licenses related to the operation of the facility, including a fictitious name filing, if applicable.

Upon receipt and review of the information submitted in support of a direct loan request, the department or its contractor may require the applicant to submit additional information to determine the applicant's creditworthiness and the eligibility of all project costs.

Cal. Code Regs. Tit. 25, § 8269

1. New section filed 4-16-99 as an emergency; operative 4-16-99 (Register 99, No. 16). A Certificate of Compliance must be transmitted to OAL by 10-13-99 pursuant to Education Code section 8277.6 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-1-99 as an emergency; operative 10-13-99 (Register 99, No. 40). A Certificate of Compliance must be transmitted to OAL by 2-10-2000 or emergency language will be repealed by operation of law on the following day.
3. Repealed by operation of Government Code section 11346.1(g) (Register 2000, No. 9).
4. New section filed 2-2-2001; operative 2-2-2001 pursuant to Government Code section 11343.4(c) (Register 2001, No. 5).

Note: Authority cited: Section 8277.6(g), Education Code. Reference: Sections 8277.5(e), 8277.6(b) and (g), Education Code.