Mississippi Administrative Code
Title 6 - Economic Development
Part 4 - Community Services
Chapter 3 - Amended Local Governments Capital Improvements Revolving Loan Program (CAP)
Rule 6-4-3.4 - General Project Requirements

A. The Applicant must fulfill the requirement of the standard application, which must be Submitted to MDA for review and acceptance.

B. The Applicant may only submit one project per application.

C. The construction or renovation of economic development buildings for speculative purposes requires a 50/50 match. The match must be in cash or in-kind assets.

D. The Applicant may not use the funds to retire any debts, except for current construction type loans directly related to the project.

E. Recreational sites acquired and/or developed with CAP assistance cannot be converted to uses other than their original scope/intent during the life of the loan.

F. The Applicant must not purchase a building or facilities from individual(s), company(ies), or corporation(s) with CAP funds, and subsequently lease them to the seller (previous owner) within 5 years of acquisition.

G. The Applicant may not purchase a building that has been constructed in the last six months.

H. The Applicant may not purchase an existing building or facility for more than the appraised value.

I. The Applicant may not utilize CAP proceeds to make a loan to any private entity, public entity, or individuals.

J. If applicable, the Applicant must obtain written approval from the MDA-appointed legal counsel stating that the project qualifies for a tax-exempt status. The associated costs are the responsibility of the Applicant and will be billed directly by the appointed legal counsel.

K. Before releasing CAP funds, the Applicant must provide title insurance on all real property acquisitions or title opinion on all other projects from the Applicant's attorney.

L. The Applicant must follow all procurement and purchase laws. If an applicant has not advertised for bids within 120 days after receiving loan approval, the state will have the option to recall the CAP funds.

M. The Applicant must comply with all nondiscrimination and equal opportunity requirements. MDA encourages the use of Minority-owned Business Enterprises ("MBE") and Women-owned Business Enterprises ("WBE").

N. If the CAP funds are used in a joint project with other funds, then the CAP may be subject to the other funds' regulations.

O. If applicable, an access road for industrial development must follow state requirements. CAP loan funds are not to be utilized on major highways.

P. The Applicant must retain title and maintain, preserve and keep the project in good working order and condition until the CAP loan is satisfied.

Q. The Applicant may not utilize CAP proceeds for the purchase of construction related equipment, rolling-stock type equipment, or any equipment not integral to the operation of the facilities or structure being purchase, constructed or repaired.