La. Admin. Code tit. 7 § V-105

Current through Register Vol. 50, No. 11, November 20, 2024

Section V-105 - Contents of Application

A. Every applicant for a market commission loan, whether for a direct or participation loan, or for a loan guaranty, shall submit the following information to the State Market Commission:

1. names and addresses of all principals;

2. a statement of the nature and amount of the interest held by each principal;

3. sworn statement of the relationship, if any, of any of the principals with any state official and/or with any employee of the State Department of Agriculture;

4. location and legal description of the property to be offered as security;

5. evidence that title is or can be vested in the name of the applicant;

6. personal financial statements of every principal of the firm, corporation, partnership, or association, prepared in accordance with generally accepted accounting principles. In the case of corporations and cooperative associations, every member of the board of directors, by whatever name known, must provide personal financial statements;

7. credit analyses of the principals, to be provided by an independent source, such as a bank or other lending institution;

8. a property appraisal, prepared in accordance with §107 hereof, of all movable and immovable property to be offered as security;

9. listing of all equipment and furnishings, both movable and immovable by destination, with amortization tables as appropriate, if equipment and furnishings will be offered as part of the security;

10. evidence of rejection, with written reasons therefor, from at least two private lending institutions in the area or at least two public lending institutions other than the State Market Commission;

11. evidence of satisfactory interim financing;

12. a three-year projected cash flow statement;

13. an evaluation of the professional management capability of the individual(s) primarily responsible for the operation of the facility, to be provided by an independent, reputable source not involved in the firm, partnership, corporation, or association;

14. an explanation of how the marketing facility for which the loan is sought will benefit the community in which the facility is to be located;

15. written authorization for the State Market Commission to perform any credit check(s) which the commission may, in its discretion, deem advisable.

B. Every applicant for a loan for new construction shall provide, in addition to the information required by §105. A the following information:

1. blueprints and construction specifications, if available at date of application. In the absence of blueprints and construction specifications, the applicant shall provide a written description of the planned construction at the time of application, to be followed by blueprints and construction specifications as set forth herein. It is not the intent of the market commission to require unnecessary expenditure of the applicant's funds; however, in the event that blueprints and construction specifications cannot be provided at the time of application, any applicant receiving approval for a loan shall be required to provide, within 90 days after approval of the loan, either copies of blueprints and construction specifications, or a written statement of the reasons for delay in provision of such blueprints and construction specifications. Reasons acceptable to the market commission shall include, but not be limited to, failure of the architect to timely provide all drawings and specifications;

2. a statement of the number of jobs to be made available upon completion of the facility;

3. evidence of adequate operating funds for a period of at least one year following completion of the facility;

4. a projected construction schedule, with anticipated completion date.

C. Every applicant for a loan for the purchase or expansion of existing facilities shall provide, in addition to the information required by §105 A, the following information:

1. profit and loss statements for the three years immediately preceding date of the application;

2. balance sheets for the three years immediately preceding date of the application;

3. statement demonstrating the marketability of the product or process for which the funds are sought;

4. such additional market data as will enable the State Market Commission to determine the advisability of loan approval;

5. a statement of the number of jobs existing at the time of the application and the number of additional jobs to be created as a result of the proposed purchase and/or expansion of the facility;

6. blueprints of the existing facility, if purchase is contemplated, and, in the case of proposed expansions, blueprints of the existing and proposed facility. The applicant shall provide a detailed statement of reasons when prints cannot be provided. In the event that blueprints and specifications cannot be provided at the time of the application, any applicant receiving approval for a market commission loan will be required to provide blueprints and construction specifications within 90 days after approval of the loan. The market commission may, however, at its discretion, waive the requirements for provision of blueprints and construction specifications for simple additions, but shall waive such requirement only in open session with adequate explanation for its actions.

D. Any applicant for a loan guarantee shall provide, in addition to the information required by §105 A, a letter of commitment from a lending institution setting forth the terms and conditions upon which the loan sought to be guaranteed will be made.

La. Admin. Code tit. 7, § V-105

Promulgated by the Department of Agriculture, Market Commission, LR 6:253 (June 1980).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:404 and R.S. 3:408.