Section 15-120-10 - Loan application procedure(a) All persons applying for loans shall utilize the department's designated loan application form, or the appropriate SBA forms which may be obtained from a commercial bank or the local SBA office.(b) All financial statements submitted by an applicant shall show the applicable date of the information given and shall be signed and certified by the proprietor, partner, or a licensed public accountant. The department may require an audited statement. The department may also require that financial statements accompanying an application include balance sheets and profit and loss statements for the past five tax years, a year to date interim financial statement dated no later than ninety days prior to the application date, tax returns, and other documents or information deemed necessary by the department or the council.(c) The applicant's proposed business plans, except financial statements or personal information, shall be reviewed by the council to assess whether the proposed community-based economic development activity or community-based enterprise is likely to achieve the purposes of this chapter.(d) The department shall approve a loan only where the applicant can provide reasonable assurance that the loan can and will be repaid pursuant to its terms. Reasonable assurance of repayment shall be based upon consideration of the applicant's record of past loan activity, past earnings, or projections of future earnings which indicate that the applicant will be able to repay the loan from the income of the business.(e) Information on applications meeting the requirements enumerated in this chapter shall be reviewed by the council. Financial statements or personal information shall be withheld from review by persons other than the director or the director's authorized staff. The council shall assess whether the proposed community-based economic development activity or community-based enterprise is likely to achieve the purposes of this chapter. The council shall make recommendations to the director regarding the acceptability of the proposed business concept. Final approval or disapproval of the loan application shall be made by the director.(f) An applicant shall not be required to pay any fees in connection with filing an application but shall be required to pay for such costs as appraisals, title searches, documentation and recordation of mortgages, and any other work required in processing the loan which is not performed by the department. At the discretion of the department, an applicant may be responsible for hiring independent appraisers to determine the value of capital assets or to assess the economic feasibility of a business operation.[Eff MAY 15 2020] (Auth: HRS § 210D-8) (Imp: HRS § 210D-8)