15-5-705. Funding or guarantee of loans — Conditions.

Arkansas Code — all titles (historical 2020) · legal_authorities

15-5-705. Funding or guarantee of loans — Conditions.

15-5-705. Funding or guarantee of loans — Conditions. (a) Loans may be guaranteed when: (1) The Arkansas Development Finance Authority deems the utilization of a loan guaranty in the best interest of the economic development of the State of Arkansas; (2) The amount in the Small Business Revolving Loan Fund, excluding the unpaid portion of any direct loan made from the fund in accordance with subsection (b) of this section, is sufficient to pay current calendar debt service requirements on all guaranteed loans currently outstanding plus the loan to be guaranteed; (3) The small-business person is found to be financially responsible and demonstrates that sufficient income may reasonably be expected to be available to pay as they come due the amortization payments of the loan and all normal operating expenses of the business; and (4)(A) A financial institution agrees to participate in the financing package necessary to accomplish the project. (B) Participation may range from ten percent (10%) to fifty percent (50%) depending upon the project and the requirement for funding. (b) A direct loan may be made by the authority from the fund when: (1) The authority deems the making of a direct loan to be in the best interest of the economic development of the State of Arkansas; (2) The small-business person is found to be financially responsible and demonstrates that sufficient income may be reasonably expected to be available to pay as they come due the amortization payments on the loan and the normal operating expenses of the business; and (3) The assets remaining in the fund, excluding the unpaid portion of any direct loan held by the fund, shall not be reduced by the making of the loan to an amount less than is required by subdivision (a)(2) of this section

Source: Arkansas Code — historical release 78 (November 6, 2020) · 15-5-705

Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.