Section 8270 - Application Processing and Evaluation(a) Within ten (10) working days of receipt of an application for a direct loan, the department or its contractor shall provide the applicant with written notice as to whether the applicant and proposed project are eligible to receive a direct loan, and whether the application is sufficiently complete to allow further processing. If the applicant or project is ineligible, or if the application is incomplete, the notice shall specify the steps, if any, the applicant may take to correct the identified deficiencies(b) Within sixty (60) working days of notifying an applicant that an application is complete and has been accepted for further processing, the department or its contractor shall render a written decision on the application.(c) The department or its contractor shall approve a direct loan application when it finds that all of the following requirements have been met: (1) The applicant and the project are eligible;(2) All costs to be funded with direct loan proceeds are eligible costs;(3) The project is in accordance with the threshold and priority criteria set forth in section 8254;(4) The business to be assisted using direct loan funds is creditworthy;(5) Repayment of the loan is secured by reasonably available collateral which may include, but shall not be limited to, a deed of trust on the property assisted with the direct loan and the personal guaranties of any shareholders or partners;(6) The total of all funds available to the project are sufficient to accomplish the project; and(7) Sufficient funds remain available in the Direct Loan Fund to fully fund the loan.(d) As part of its approval, the department or its contractor may place conditions on a loan to insure that the requirements of this subchapter are met.(e) If the written decision required by subsection (a) above is to deny the application, the written decision shall include an explanation of the reason for denial.Cal. Code Regs. Tit. 25, § 8270
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must be transmitted to OAL by 10-13-99 pursuant to Education Code section 8277.6 or emergency language will be repealed by operation of law on the following day.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 A Certificate of Compliance must be transmitted to OAL by 2-10-2000 or emergency language will be repealed by operation of law on the following day.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.
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).