S.D. Admin. R. 68:02:02:21

Current through Register Vol. 51, page 56, November 4, 2024

Section 68:02:02:21 - Factors for board action

When making a decision on an application, the board may, in addition to other factors necessary to make a prudent loan decision, consider the following:

(1) The concept is new technology or a new application of existing technology with a reasonable assurance that the concept will work;

(2) Preliminary market and feasibility research has been conducted by the applicant or others, and there is a reasonable assurance of a potential market;

(3) The applicant has demonstrated the ability to manage the commercialization of the concept and has prepared a commercialization development plan;

(4) There is favorable community support for the project;

(5) There are favorable recommendations for the project from local economic development groups, university-based technical specialists, or other qualified service providers;

(6) There are adequate references available to determine the applicant's qualifications and background;

(7) The applicant demonstrates a personal commitment to the project;

(8) The capacity of the applicant to repay a loan if awarded, including the amount of the loan, the economic feasibility of the project and product; the ability of the applicant to service the debt from cash flow of operations, capital, or collateral; the review of the financial status of the project, business plan, and applicant; the satisfaction of engineering, legal and environmental regulations; and the availability of necessary utilities;

(9) The amount, terms, and conditions of the loan, if awarded, and compatibility with the needs of the business and the VASF;

(10) There is an adequate and realistic budget projection;

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

(12) The balance remaining in the VASF.

S.D. Admin. R. 68:02:02:21

34 SDR 68, effective 9/13/2007.

General Authority: SDCL 1-16G-5, 1-16G-8(8).

Law Implemented: SDCL 1-16G-5, 1-16G-8(8), 1-16G-25 to 1-16G-27, inclusive.