085-1 Wyo. Code R. § 1-6

Current through April 27, 2019
Section 1-6 - Revolving loan fund

(a) Eligible Applicants. Any business within the business area as defined under section 2(a)(iv) may submit an application to the Board for review and recommendation to the Council. Only complete applications shall be submitted to the Council.

(b) Application Process.

  • (i) All applications for loans shall be submitted on the required forms. Applications will be accepted at any time and scheduled for final review and recommendation by the Board on a first-come, first-served basis.
  • (ii) Three (3) copies of the application must be submitted to the Board offices at:

    Wyoming Business Council

    Wyoming Main Street Program

    214 W. 15th St.

    Cheyenne, WY 82002

  • (iii) Every application must include:
    • (A) three (3) years of financial statements of the applicant, plus current financial statements;
    • (B) projected cash flow and business plan;
    • (C) certificate of incorporation or other documentation of legal status of the applicant;
    • (D) by-laws or other operating agreements of the applicant;
    • (E) resolution authorizing borrowing by the applicant;
    • (F) architecture/engineer design of renovation or a statement of intended use of funds to begin design process;
    • (G) certification that the property owner has met with an approved architect or other representative of the Board for an inspection of the property;
    • (H) certification that all statutory requirements will be met;
    • (I) proposed collateral for the loan, value of collateral, lien position, and disclosure of prior liens; and
    • (J) proposed collateral for the loan shall be at a loan to value of no more than 85%.

(c) Review and Recommendation.

  • (i) Completed applications shall be reviewed by Council staff to determine eligibility, completeness, and credit-worthiness. Incomplete applications will be returned to the applicant.
  • (ii) Incomplete applications will be returned with a written explanation of the findings within fifteen (15) working days.
  • (iii) Complete applications shall be forwarded to the Board for review and evaluation. The Board will formulate a recommendation to the Council. The Board will include the following in its review and evaluation:
    • (A) the maximum loan is one hundred thousand dollars ($100,000);
    • (B) are there sufficient uncommitted funds in the Wyoming Main Street account to fully fund the request;
    • (C) will funds provided by the state be adequately collateralized. The adequacy of the collateral shall be determined by the Council.
  • (iv) Applicants shall be notified of the time and place of the Board meeting at which their application will be evaluated.
  • (v) At the meeting, the Board shall consider each application and allow for comments from the applicant and the Board. The Board will review each application and recommend the Council approve or disapprove. In the event the application is denied, the Council staff will advise the applicant in writing the reasons for denial and any remedial steps necessary for the application to be reconsidered.

(d) Terms, Conditions, and Repayment.

  • (i) In making loans, the Council shall:
    • (A) establish an up-front fee and/or a per annum administrative fee of at least one percent (1%) each of the total loan amount;
    • (B) establish a commitment period for disbursement of loan proceeds not to exceed two years;
    • (C) set an interest rate (minimum 4% per annum) after considering:
      • (I) the applicant's projected cash flows and business plan; and
      • (II) the applicant's collateral and security package.
    • (D) establish the terms of repayment to be not more than fifteen (15) years;
    • (E) establish that this loan will be permanent financing and give a letter of commitment to that effect. Borrower will need to obtain separate construction finances. This permanent loan will be advanced to pay off construction loans upon certification that all construction is complete and the contractor and all laborers and materials have been paid;
    • (F) require all statutory requirements regarding the loan be met.

(e) Servicing Agents.

  • (i) The Council staff may act directly as the loan-servicing agent, or contract for that service.
  • (ii) The Servicing agent may be responsible for loan packaging, closing, documentation, loan portfolio management, collection and reporting, and other duties as required under the loan servicing agreement.
  • (iii) It will remain the responsibility of the Council staff to monitor the performance of the portfolio through frequent meetings with the Servicing agent.

(f) Board Meetings.

  • (i) The Board shall meet at the call of the chairman, the secretary or upon request of the majority of its members in accordance with W.S. 16-4-407 and W.S. W.S. 9-12-1102 (f).
  • (ii) The Board shall conduct application reviews at a public meeting with a quorum of the Board in attendance. Board members may be physically present or participate through tele- or video-conference. Loan recommendations shall be approved by affirmative vote of a majority of the members of the Board voting on the matter. The Board reserves the right to go into Executive Session should it determine matters to be discussed are proprietary or confidential in nature.
  • (iii) The Board reserves the right to meet and determine requests for changes in loan commitments, internal policy matters, or other similar internal business affairs, by tele- or video-conference. Minutes will be kept of the tele- or video-conference meetings and the vote duly recorded and made a part of the minutes. Proper notice of such meetings will be provided.
  • (iv) The Board reserves the right to declare a moratorium upon the acceptance of applications.

085-1 Wyo. Code R. § 1-6