The Director may approve a loan request if the Director finds that:
The Applicant and the project are eligible for a loan from the Fund according to the criteria set forth in OAR 123-019-0020 and 123-019-0030.
The Applicant has available, and has irrevocably committed to the project, Equity funds in the form of cash or property in an amount equal to or greater than 20 percent of the amount of the loan from the Fund.
The proposed project is feasible and a reasonable risk from practical and economic standpoints, and the loan has a reasonable prospect of repayment from cash flow and collateral.
The Applicant will provide good and sufficient collateral for the loan. The collateral coverage ratio for the loan should be at least 1:1 ratio applying the following advance rates:
Real property will generally be valued for collateral purposes at 80 percent of the tax assessed value or 90 percent of appraised value;
New construction will generally be valued for collateral purposes at no more than 90 percent of cost;
Existing machinery will generally be valued for collateral purposes at 70 percent of depreciated book value;
Newly acquired machinery will generally be valued for collateral purposes at 60 percent of acquisition cost for new equipment and 75% of acquisition cost for used equipment.
The Department may, in its sole discretion, assign a value of more or less than the above percentages. Applicants should be aware that the collateral value of out-of-state real property will be significantly discounted from nominal assessed or appraised value.
Monies in the Fund are or will be available for the proposed project.
The Applicants financial resources and management capability appear adequate to assure success of the project.
The amount borrowed from the Fund by any borrower at any one time does not exceed $75,000 and the total amount borrowed does not exceed $100,000.
The Director may, in his or her sole discretion, permit the assumption of an outstanding EDLF loan, if the assuming obligor satisfies the Director as to its willingness and ability to service the loan, and if the States collateral position is not diminished. The Director may require the obligor to meet all eligibility requirements set out in OAR 123-019-0020 and 123-019-0030. EDLF loans are not necessarily or automatically assumable.
The Applicant agrees to abide by all laws and regulations applicable to the Applicants project and will receive all applicable federal, state and local permits and licenses before the disbursement of any proceeds from the Fund.