The Department shall determine when an application is complete.
It shall be the responsibility of the financial institution to submit a complete application.
The Department will review an application based on the following criteria and considerations:
An application will not be approved unless the Department determines that there is a reasonable prospect that the borrower will repay a loan according to its terms.
An application will only be approved to the extent, in terms of amount, percentage and period of insurance that is necessary and prudent for the Department to provide to complete the financing.
No application will be approved unless the Department determines that the insured loan will be serviced by a financial institution as required by the Department.
No application will be approved unless the Department determines that the borrower is eligible and the proceeds of the insured loan will be used for an eligible purpose.
No application will be approved unless the Department determines that the application is complete and that information sufficient to make an informed decision on the application has been received.
In reviewing applications, the Department will consider the following, as applicable:
The extent to which the borrower demonstrates a need for an insured loan.
The economic feasibility of the business endeavor as evidenced by the borrowers present and past financial situation and business experience and the general reasonableness of the business proposal and financial projections for the future.
Whether the borrower and any guarantors have satisfactory credit histories.
Whether the borrower has sufficient capital and other resources to conduct the business as planned, and the amount and source of equity contributed.
The adequacy of the security offered for the loan.
The extent to which the risk of financial loss is shared by others.
The viability of the industry of which the borrower is a part and the contribution of the borrower to that industry.
The extent to which the borrower contributes to local economic development, market development and employment opportunities.