Md. Code Regs. 24.05.05.07

Current through Register Vol. 51, No. 24, December 2, 2024

Section 24.05.05.07 - Application and Processing Procedures

A. Application. Applications shall be made upon standard forms prescribed by the Authority. Each application shall include the following documentation:

(1) A fully completed and properly executed application;

(2) A copy of the articles of incorporation, bylaws, partnership agreement, or other organizational documents;

(3) A detailed description of the proposed use or uses of the proceeds of the loan including projected cash flow analyses and appraisals, and marketing plans or descriptions if requested by the Authority;

(4) Information that relates to the financial status of the applicant, including:

(a) Annual financial statements prepared in accordance with generally accepted accounting principles for 3-5 of the most recent years,

(b) A current balance sheet,

(c) A recent profit and loss statement,

(d) Financial projections for the next 3 years,

(e) Credit references,

(f) Personal financial statements of any individual applicants and personal guarantors, and

(g) The status of outstanding indebtedness;

(5) A detailed description of the application's experience in the trade or business for which the financial assistance is sought;

(6) Information that relates to the economic impact to be created by the financial assistance; and

(7) Any other revelant information the Authority requests.

B. Processing of Application.

(1) After execution of the application, the applicant shall submit it to the Authority along with a copy of an executed commitment letter from the lender to provide financing which, at a minimum, shall state the amount, rate, and terms of the financing and amount of any requested insurance or a letter of intent from the lender on a form prescribed by the Authority.

(2) Each application shall be subject to an initial review by the Authority's staff to make a preliminary determination of the eligibility of the applicant and the project in accordance with these regulations.

(3) Each application shall be submitted to the Authority for review by the Authority's staff at least 14 business days before any Authority meeting date.

C. Approval. Approval of financial assistance shall be evidenced by a signed resolution of the Authority. The Authority is not obligated to take further action after approval of a resolution until an applicant executes and returns a copy of the lender's commitment letter.

Md. Code Regs. 24.05.05.07