Section 715.420  Program Requirements

a)         Upon approval to participate in the Program, participating financial institutions will be allocated up to $1,000,000 in loan guarantees based on the availability of guarantee funds. Financial institutions must allocate all of their guarantee funds within one year and in the event that the financial institution does not allocate all of its guarantee funds within one year, a new application will need to be completed;

b)         Each business guarantee is for up to a maximum of 5 years;

c)         The maximum allowable guarantee amount is 25% of the business loan amount, which cannot exceed the $1,000,000 in guarantees allocated to the participating financial institution;

d)         Guarantees may not be used to refinance existing debt;

e)         Participating financial institutions must submit a one-time, nonrefundable fee of $1,000 made payable to Treasurer;

f)         Participating financial institutions will have 30 days from the allocation of the guarantee funds to submit the initial business guarantee application to the Treasurer for approval; and

g)         Participating financial institutions must submit annual reports to the Treasurer for each business loan guaranteed through the Program in accordance with Section 715.400.