Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) All Applicants must apply in writing for a loan. The Board may make a loan application form available to assist applicants in applying for a loan. A complete application may consist of a written request containing the following items:
(1) Characteristics of the business shall include the applicant legal name, physical address, mailing address, contact person's name and phone number, copy of business organizational documents, copies of business licenses and permits, business plan, key ownership and management resumes, list of all owners with percentage owned and titles, authorizations to obtain credit reports, a Recycling Market Development Zone Administrator's acknowledgement of the project; payment of a loan application fee, and certification of compliance with applicable laws and regulations to properly conduct and operate the business in California.
(2) Demonstration of ability to repay shall include the business historical and projected financial statements and income tax returns; key management and ownership personal financial statements and income tax returns; schedules of debts; facility lease agreement or copy of deed of trust on the project site; sources and uses of all project costs. The financial projections shall include a list of assumptions under which they were prepared that are reasonable and can be substantiated. The applicant may need to provide a feasibility study and cost break even analysis accounting for the fixed and variable costs to produce a product including the sales price of the product and the quantity of units that must be produced and sold to achieve a break even and profitable cash flow.
(3) Demonstration of the ability to collateralize the loan shall include a detailed list of assets that will secure the loan with documentation supporting the asset value such as appraisals, purchase orders, invoices, cancelled checks, or similar documents; and ownership verification such as deeds of trust, Uniform Commercial Code financing statements, Ownership Certificates. The Board reserves the right to discount the asset value based on age and remaining expected useful life.
(4) The applicant shall provide documentation to substantiate a matching funds requirement of twenty-five percent or more investment into the project. This shall be achieved by providing purchase orders, invoices, cancelled checks, supplemental financing commitment letters or promissory notes, executed investor agreements with evidence of transfer of funds, or other similar documents.
(5) Description of the project to be financed including the feedstock source, type, quantity and availability, the manufacturing process, end product specifications and marketability, current and projected tonnage of materials to be diverted from California landfills, public environmental reports and indemnification to discern the possible risks which may arise from hazardous waste or materials related to the project or previous operations at the site.
Additional information required from businesses and not-for-profit organizations is described in subsection (b) below. Local government or agency applicants must also provide the information requested in subsections (b) and (c) below.
(b) Applicant shall provide any further information or documentation deemed necessary by the Board to determine the creditworthiness of the Applicant, or the Applicant's ability to secure and repay the loan.
(c) Applications from local governments or agencies must contain the following additional information:
(1) A description of the local government's or agency's activities and responsibilities;
(2) The local government's or agency's annual financial operating statements for the previous three years;
(3) A governing board resolution granting authority to make application to the Board for a loan commitment.
1. New section filed 11-24-92; operative 11-24-92 pursuant to Government Code section 11346.2(d) (Register 92, No. 48).
2. Change without regulatory effect amending NOTE filed 7-8-94 pursuant to section 100, title 1, California Code of Regulations (Register 94, No. 27).
3. Amendment of section and NOTE filed 4-8-98; operative 5-8-98 (Register 98, No. 15).
4. Amendment of subsection (a), new subsections (a)(1)-(a)(5) and amendment of NOTE filed 10-18-2005; operative 11-17-2005 (Register 2005, No. 42).
Note: Authority cited: Section 40502, Public Resources Code. Reference: Section 42023.4, Public Resources Code.
