S.D. Admin. R. 12:22:02:08

Current through Register Vol. 51, page 67, December 16, 2024

Section 12:22:02:08 - Factors for action by VAFA

The VAFA, in making a decision on an application, may, in addition to other factors necessary to make a sound loan decision, consider the following:

(1) Program impact factors:

(a) Population of the community where the project is to be located;

(b) Amount of agricultural products used;

(c) Number of jobs created for low-income persons and displaced farm families;

(d) Amount of loan requested;

(e) Net economic effect of increasing or stabilizing the economy on the community, area, and state;

(f) Competitive effect on existing businesses;

(g) Support of the public entities of the community and area;

(h) The amount of the owner's equity contributed to the project;

(i) The effect of the project on the environment, health, and safety of the people in the community and state;

(j) Compatibility with economic development plans of the area and state;

(k) Potential for creating quality jobs and growth of those jobs;

(l) Payroll pay structure; and

(m) Employee benefit package;

(2) Business feasibility factors;

(a) The potential success of the business;

(b) The character, experience, management record, and background of the applicant;

(c) The capacity of the applicant to repay the loan. In determining the capacity of the applicant, the VAFA shall consider the following:

(i) The amount of the loan;

(ii)The economic feasibility of the project and product;

(ii)The ability of the applicant to service the debt from cash flow of operations, capital, or collateral;

(iv) The review of financial status of the project, business plan, and applicant;

(v) The satisfaction of engineering standards, legal requirements, and environmental regulations; and

(vi) The availability of necessary public utilities;

(d) The total capitalization of the project, which includes all capitalization subordinated to VAARP;

(e) The terms and conditions of the loan and their compatibility with the needs of the business and VAARP; and

(f) The availability of sufficient unencumbered collateral to secure the interests of VAARP.

S.D. Admin. R. 12:22:02:08

28 SDR 44, effective 10/2/2001.

General Authority: SDCL 1-16E-24.

Law Implemented: SDCL 1-16E-8.