085-2 Wyo. Code R. § 2-10

Current through April 27, 2019

Section 2-10 - Convertible Loan Program

(a) A business must apply through a city, town or county for assistance under the convertible loan program. The WBC will grant funds to the local government who will in turn loan the funds to a for-profit business. A portion of the loan may be converted to a grant, if during a designated period of time, as determined by the WBC, the business creates new jobs. The terms, interest rate, and amount of the loan to be converted to a grant shall be determined by the WBC. Generally the amount converted will be $500 per each new job created.

(b) No funds are allocated to this program category, but rather funds may be redirected to the convertible loan category upon council approval, from any CDBG economic development category. Maximum amount per each application shall be $150,000. Minimum amount per each application shall be $10,000.

(c) Activities eligible for funding from the convertible loan program:

(i) Acquisition of real property;

(ii) Building construction;

(iii) Site improvements;

(iv) Acquisition or rehabilitation of machinery and equipment necessary for the operation of the project;

(v) Acquisition, rehabilitation and leasehold improvements of an existing facility;

(vi) Payment of professional fees -- surveying, appraising, engineering, architectural, legal, accounting and closing costs. All fees must be determined to be legal and reasonable;

(vii) Working capital needs of the project.

(d) Compliance with national objective: At least 51 percent of the jobs created must be available to low and moderate income persons. Applicants should propose methods to ensure preferential recruitment, hiring and training of Wyoming workers, particularly those of low and moderate income.

(e) Any application submitted must contain the following information:

(i) Business plan. Applicants must submit a business plan that contains;
- (A) A description of the business,
- (B) Qualifications of management,
- (C) A market investigation; and other documentation of financial feasibility as appropriate,
- (D) Three-year financial statements including balance sheets, income statements,
- (E) Three-year financial statements including balance sheets, income statements,
- (F) Cost quotes for all project costs.

(ii) A list of each job classification/position that will be created by the project that includes;
- (A) A brief job description,
- (B) Educational/job experiences requirements,
- (C) Salary range,
- (D) Hours worked per week/months worked per year,
- (E) Time frame in which the jobs will be created,

(f) Guidelines for evaluation projects:

(i) Project costs and financial guidelines; these guidelines are to insure;
- (A) That project costs are reasonable,
- (B) That all sources of project financing are committed,
- (C) That to the extent practicable, CDBG funds are not substituted for non-federal financial support,
- (D) That the project is financially feasible,
- (E) That to the extent practicable, the return on the owner=s equity investment will not be unreasonably high, and
- (F) That to the extent practicable, CDBG funds are distributed on a pro rata basis with other funds provided to the project.

(ii) Public benefit: The grantee is responsible for making sure that a minimum level of public benefit is obtained from the expenditure of CDBG funds under this program. The amount of CDBG assistance cannot exceed $50,000 per full time equivalent job created.

(g) Management capacity: Applicants must demonstrate capacity to plan, administer, and service the proposed project, manage the budget, maintain adequate financial records, maintain required project records, submit reports, and meet the proposed timetable for completion. Management capacity is important for the success of a program.

(h) Use of program income: All income derived from the program--principle and interest payments--may be retained by the local government, and re-used for any eligible activity allowed by the state of Wyoming CDBG program.

085-2 Wyo. Code R. § 2-10