OAR 123-021-2600: Application Procedure

(1) A Financial Institution seeking loan insurance under the Program is responsible for submitting a complete application to the Department. The Department will not consider an application unless the Department determines that the application is complete and that information sufficient to make an informed decision on the application has been received. (2) The Department will approve an application only in an insurance amount, insured percentage of loan principal, and insurance term that are necessary and prudent to complete the financing. (3) No application will be approved unless the Department makes the following determinations: (a) There is a reasonable prospect that the Borrower will repay a loan according to its terms; (b) The insured loan will be serviced by the Financial Institution that applies for the insurance; and (c) The Borrower is eligible and the proceeds of the insured loan will be used for an eligible purpose. (4) In reviewing applications, the Department will consider the following, as applicable: (a) The extent to which the Borrower demonstrates a need for an insured loan; (b) The economic feasibility of the project as evidenced by the Borrower's past and present financial circumstances, business experience and the commercial reasonableness of the business proposal and financial projections; (c) Whether the Borrower and guarantors have satisfactory credit histories; (d) Whether the Borrower has sufficient capital and other resources to conduct the business as planned; (e) The amount and source of equity contributed by the Borrower; (f) The adequacy of the collateral offered for the loan; (g) The extent to which the risk of financial loss is shared by the Borrower, Financial Institution and the Fund; (h) The viability of the industry of which the Borrower is a part and the contribution of the Borrower to that industry; and (i) The extent to which the Borrower and project contribute to the local economy, industry diversification within the region, and local employment opportunities.