94- 457 C.M.R. ch. 101, § 5

Current through 2024-51, December 18, 2024

Section 457-101-5 - Criteria and Considerations

A.Required Findings. An application may not be approved unless the Authority determines:

(1) that there is a reasonable prospect that the loan will be repaid according to its terms, and repayment will be secured by appropriate levels of collateral;

(2) it is prudent for the Authority to provide the amount, percentage and period of insurance proposed that such amount, percentage and period of insurance is necessary to complete the financing;

(3) that borrower and lender have met applicable requirements of the Act and this Rule, as well as the Credit Policy, and that the loan will be serviced by the Lender as required by the Authority;

(4) that the Borrower and the Project are eligible, and the Borrower is creditworthy and of good character;

(5) the application is complete and that information sufficient to make an informed decision on the application has been received;

(6) A significant public benefit will result from the project; and

(7) The Borrower is not known to be in violation of any State, federal or local law or regulation;

(8) For insurance liability exceeding $1,000,000, and in such other instances where the Authority determines it is appropriate, the Authority shall obtain from the State Department of Environmental Protection a written assessment of the environmental conditions known to the Department to exist at a project location.

B.Other Considerations. In reviewing applications, the Authority may consider the following, as applicable, without limitation:

(1) The extent to which the borrower demonstrates need for the loan.

(2) The economic feasibility of the business endeavor as evidenced by the borrower's present and past financial situation and business experience and the general reasonableness of the business proposal and financial projections for the future.

(3) Whether the borrower and any guarantors have satisfactory credit histories.

(4) Whether the borrower has sufficient capital and other resources to conduct the business as planned, and the amount and source of equity contributed.

(5) The adequacy of the security offered for the loan.

(6) The extent to which the risk of financial loss is shared by others.

(7) The current environment and short and long term viability of the industry of which the enterprise is a part and the contribution of the enterprise to that industry, as well as the effect of the project on competitors within the State.

(8) The extent of public benefit expected to result from the Loan.

94- 457 C.M.R. ch. 101, § 5