Mich. Admin. Code R. 324.14505

Current through Vol. 24-21, December 1, 2024

Section R. 324.14505 - Loan application process

Rule 5.

(1) A small business shall file an application for a small business pollution prevention loan on an application form provided by the department.

(2) The application shall include all of the following information:

(a) Applicant and lending institution contact information.

(b) A description of the pollution prevention project, which provides sufficient detail to properly evaluate the proposed project and determine whether it meets the criteria of R 324.14504.

(c) The expected reduction in environmental waste, water, or energy used.

(d) A project implementation schedule.

(e) The small business pollution prevention loan amount.

(f) Certification that all necessary construction permits and operating licenses have been obtained, or will be obtained, under applicable laws and regulations.

(3) The lending institution or applicant shall submit the completed loan application and supporting documentation to the department for approval. At a minimum, supporting documentation shall include all of the following:

(a) Written cost estimate(s) for all project costs.

(b) A loan commitment letter from the lending institution including the following information:

(i) A commitment to participate in the small business pollution prevention loan program with the department.

(ii) The lending institution's federal tax identification number.

(iii) The conclusion that the loan recipient can service the debt of the full loan amount requested.

(iv) A description of the loan term, interest rate on the lending institution loan portion, and the collateral to be taken as security for the loan.

(4) A lending institution shall not award a small business pollution prevention loan until it receives a notice from the department that the project described in the application is an eligible pollution prevention project.

(5) A lending institution shall execute a small business pollution prevention loan under terms in the loan agreement and the lender agreement.

(6) The applicant shall execute a small business pollution prevention loan under terms in the loan agreement and the supplemental agreement.

Mich. Admin. Code R. 324.14505

1998-2000 AACS; 2013 AACS