Section Cdfa 310.14 - Economic Development Entity Threshold Indicators(a) Applications with an EDE as a subrecipient shall be awarded a maximum of 155 points for EDE indicators, based on (c) through (m).(b) If the EDE is other than a regional development corporation, as defined by Cdfa 302.49, then(1) 20% of the principal and interest on a project loan must be paid to the regional development corporation in whose area the project takes place, or(2) If the project is for real estate development, 20% of the net sale amount must be paid to the regional development corporation in whose area the project takes place upon the sale of the real estate developed with CDBG funds.(c) Up to 10 points shall be awarded for the EDE's experience at acquiring project-related, non-CDBG loan and grant funds including, but not limited to, U.S. Department of Agriculture-Rural Development rural business enterprise grants/rural business opportunity grants/intermediary relending program (USDA-RD RBEG/RBOG/IRP), NH business finance authority (BFA), US Department of Commerce Economic Development Administration (EDA), and NH department of environmental services (DES), as follows: (1) A score of 10 points if the EDE has or had more than 6 projects;(2) A score of 5 points if the EDE has or had between 2 and 5 projects; and(3) A score of 0 points if the EDE has or had 1 or no projects.(d) Up to 15 points shall be awarded for the EDE's history of serving LMI constituents through job creation, as follows:(1) A score of 15 points if the EDE has a demonstrated history; and(2) A score of 0 points if the EDE has no demonstrated history.(e) Up to 15 points shall be awarded for the EDE's experience in making commercial loans, as follows: (1) A score of 15 points if the EDE has more than 10 years of experience;(2) A score of 10 points if the EDE has between 5 and 10 years of experience;(3) A score of 5 points if the EDE has between 3 and 5 years of experience; and(4) A score of 0 points if the EDE has less than 3 years of experience.(f) Up to 5 points shall be awarded if the EDE has experience making commercial loans, as measured by their collection history, as follows:(1) A score of 5 points if an EDE has a successful history; and(2) A score of 0 points if an EDE has no history or a negative history.(g) Up to 5 points shall be awarded if the EDE has demonstrated experience in re-lending RLF funds, as follows: (1) A score of 5 points if the EDE has re-lent RLF funds; and(2) A score of 0 points if the EDE has not re-lent RLF funds.(h) Up to 10 points shall be awarded if the EDE has participated in real estate-related projects, as follows: (1) A score of 10 points if the EDE has or had 6 or more real estate projects;(2) A score of 5 points if the EDE has or had between 1 and 5 real estate projects; and(3) A score of 0 points if the EDE has or had no real estate projects.(i) Up to 25 points shall be awarded for the EDE's lending experience, as follows:(1) A score of 5 points if the EDE has or had one or more participation loans with a commercial bank;(2) A score of 5 points if the EDE has or had one or more participation loans with a non-profit lending institution;(3) A score of 5 points if the EDE has closed at least one CDBG project during the previous 5 years;(4) A score of 5 points if the EDE has or had access to other RLF funds, such as RBEG, RBOG, and IRP; and(5) A score of 5 points if their board of directors is comprised of community representatives as a requirement of their by-laws.(j) Up to 10 points shall be awarded for the scope of the EDE service area, as follows:(1) A score of 10 points if the EDE serves more than 5 municipalities;(2) A score of 5 points if the EDE serves at least 2 and not more than 5 municipalities; and(3) A score of 0 points shall be awarded if the EDE serves only 1 municipality.(k) Up to 15 points shall be awarded if the EDE manages its own RLF, as defined in Cdfa 302.52, and documented with an audit or compiled financial statements, as follows:(1) A score of 15 points if the EDE's RLF is over $2,000,000;(2) A score of 10 points if the EDE's RLF is at least $1,000,000 and less than $2,000,001;(3) A score of 5 points if the EDE's RLF is at least $100,000 and less than $1,000,000; and(4) A score of 0 points if the EDE's RLF is less than $100,000.(l) Up to 15 points shall be awarded if the EDE has the capacity for loan origination, closings, and disbursements and collections, as follows: (1) A score of 15 points if the EDE has in-house capacity;(2) A score of 10 points if the EDE has a long-term arrangement with a qualified outside entity;(3) A score of 5 points if the EDE contracts on a project-by-project basis; and(4) A score of 0 if the EDE has no capacity.(m) Up to 30 points shall be awarded for the EDE's management and experience, as follows: (1) A score of 5 points if the EDE's loan portfolio is reviewed regularly by the board of directors or loan committee;(2) A score of 5 points if the EDE utilizes an adequate financial management and accounting system;(3) A score of 5 points if the EDE uses an attorney for loan closings;(4) A score of 5 points if the EDE maintains a funded loan loss reserve (LLR), and has documented LLR guidelines;(5) A score of 5 points if at least one EDE staff member has 5 or more years of commercial financing experience; and(6) A score of 5 points if at least one EDE staff member has a recognized economic development certification or post-graduate related degree.N.H. Admin. Code § Cdfa 310.14
(See Revision Note at chapter heading for Cdfa 300) #8387, eff 6-29-05; ss by #8515, eff 1-1-06