S.D. Admin. R. 12:07:12:13

Current through Register Vol. 51, page 67, December 16, 2024

Section 12:07:12:13 - Loan decision process

The secretary, in accordance with SDCL chapter 38-6, and the provisions of this chapter, must approve all loan the applications. The secretary shall base the decision on the following actions:

(1) The administrator shall review the application and the lender's recommendations, if applicable, based on the following criteria:

(a) The applicant and lender, if applicable, meet the requirements contained in this chapter;

(b) The project meets the requirements contained in this chapter;

(c) The application and the loan are consistent with the purposes of this chapter; and

(d) Availability of funds in the Rural Rehabilitation fund;

(2) The administrator shall review the application and submit a recommendation to the review committee;

(3) The review committee shall consider the application using the following criteria:

(a) The criteria given in subdivisions (1)(a) and (1)(b) of this section;

(b) The character, experience, management record, and background of the applicant;

(c) The net economic effect or stabilization of the project on the applicant's operation, the community, the area, and the state;

(d) The project's compliance with all local, state, and federal statutes and applicable regulations;

(e) The support of the community and the area;

(f) The competitive effect of the project on existing area businesses;

(g) The effect of the project on the environment, health, and safety of the people in the community and the state;

(h) The ability of the applicant to service the debt from the cash flow of operations, capital, or collateral;

(4) The review committee land the secretary make one of the following decisions:

(a) Approve as presented;

(b) Conditionally approve subject to modifications or performance of certain actions; or

(c) Deny.

S.D. Admin. R. 12:07:12:13

17 SDR 141, effective 3/25/1991; 38 SDR 45, effective 9/22/2011; 45 SDR 031, effective 9/13/2018

General Authority: SDCL 38-6-8.1.

Law Implemented: SDCL 38-6-3, 38-6-8.