Current through Register Vol. 6, March 22, 2024
(1) The
criteria used by the department to make development loans to a certified MBDC
will include the criteria required for certification as a MBDC as set forth in
ARM 8.99.404 plus the following
additional requirements:
(a) legally binding
commitment(s) for MBDC operating income other than earned income from the
revolving loan fund; and
(b)
legally binding commitment(s) for MBDC matching loan funds.
(2) Development loan funds will be
awarded pursuant to a promissory note, development loan agreement, and security
agreement between the department and the MBDC.
(3) The department will consider the
following in determining the amount of a development loan awarded to a MBDC:
(a) financial stability and sources and
sufficiency of operating income generated from the proposed revolving loan fund
and/or provided from other income sources of the MBDC;
(b) market potential of the MBDC;
(c) expertise and, where applicable,
performance of the MBDC in the management of a revolving loan fund;
(d) geographic and rural-to-urban balance in
distribution of program funds;
(e)
the amount of nondepartment derived funds contributed to the revolving loan
fund by the certified MBDC in addition to the required matching loan funds;
and
(f) the feasibility of the
financial projections for the revolving loan fund provided by the certified
MBDC, taking into account market size and activity, historic loan volume, and
financial performance of the certified MBDC.
(4) A development loan will not be extended
to a certified MBDC unless:
(a) there is
adequate assurance of repayment of the development loan based on the fiscal and
managerial capabilities of the certified MBDC;
(b) the amount of the development loan
together with the required MBDC matching loan funds and other funds available
is adequate to achieve the purposes for which the development loan is made;
and
(c) any delinquent debt to the
federal government or the state of Montana by the MBDC is satisfied.
Development loan funds may not be used to satisfy the debt.
17-6-406, MCA; IMP,
17-6-406,
17-6-407,
MCA;
