a. In making loans, the Council shall: - (i) establish an up-front fee and/or a per annum administrative fee of at least one percent (1%) each of the total loan amount; this fee may be reduced or waived upon approval of the Board of Directors for "guarantee loan participations";
- (ii) establish a commitment fee of 0.25% per annum of the amount of the unused commitment; to be assessed at the first anniversary of the loan date;
- (iii) establish a commitment period for disbursement of loan proceeds not to exceed two years;
- (iv) set an interest rate (minimum 4% per annum) after considering:
- A. the dollar-for-dollar match;
- B. the proposed source(s) and use(s) of the funds, and specifically, the percentage of owner's equity;
- C. other interest rates associated with total project financing;
- D. projected cash flows and business plan of the Borrower as well as the Business;
- E. credit risk of the community development organization or state development organization and the underlying Third-party loans;
- F. current and projected market interest rates; and
- G. collateral and security package.
- (v) establish the terms of repayment not to exceed ten (10) years, with an additional ten (10) year renewal upon approval by the Board of Directors of the Council;
- (vi) establish an amortization not to exceed twenty (20) years;
- (vii) establish that whenever a draw-down of funds is requested by the Borrower, provide to the Council for each Third-Party loan under consideration by the Borrower, a written loan application made by the Borrower and approved by its board, which is a detailed due-diligence analysis on the creditworthiness of the proposed Third-party loan. Such loan application shall at a minimum address and analyze the proposed financings: sources and uses of funds, commercial viability of the business/project, risks and mitigants, rationale for lending (i.e. why the Business can not obtain funding from the private sector and why the public sector should assume the risk), economic development impact, the collateral package, terms of the security agreement, and terms and conditions of the Third-party loan, etc;
- (viii) establish that whenever a draw-down of funds is requested by the Borrower, provide to the Council for each Third-party loan under consideration by the Borrower, unless waived by the Council, the Business' business plan, three (3) years of historical financial statements and current year-to date financial statements; three (3) years of tax statements; and pro-forma financial projections (income statement, balance sheet, and cash flow statement);
- (ix) establish other terms and conditions determined to be necessary by the Board of Directors, such as, that all Third-party loans shall be reviewed by and are subject to the approval of the Council and the terms of the loan documents, prior to the release of funds to the Borrower, as well as other customary and prudent terms and conditions;
- (x) require written permission from the Borrower agreeing to allow the Wyoming Department of Audit and an auditor designated by the Board of Directors to examine its books and records, upon request;
- (xi) reserve the right to terminate the agreement to ensure funds loaned or committed are invested by the community development organization or state development organization in local economic development within twenty-four (24) months; and
- (xii) require all statutory requirements regarding the loan be met.