Utah Administrative Code

The Utah Administrative Code is the body of all effective administrative rules as compiled and organized by the Division of Administrative Rules (see Subsection 63G-3-102(5); see also Sections 63G-3-701 and 702).

NOTE: For a list of rules that have been made effective since October 1, 2019, please see the codification segue page.

NOTE TO RULEFILING AGENCIES: Use the RTF version for submitting rule changes.


R990. Workforce Services, Housing and Community Development.

Rule R990-12. State Small Business Credit Initiative Program Fund.

As in effect on October 1, 2019

Table of Contents

R990-12-1. Authority.

(1) Pursuant to Section 35A-8-1201 et seq., the Housing and Community Development Division is the administrator of the State Small Business Credit Initiative Program Fund. The Division may provide these services, in whole or in part, under contract as determined by competitive bid.

(2) The legal authority for these rules is found in Section 35A-8-1202.

R990-12-2. Purpose.

The State Small Business Credit Initiative Program Fund provides loans and loan guarantees to encourage lending from financial institutions to eligible small businesses within the state as defined by the funding sources contributing to the Fund.

R990-12-3. Definitions.

(1) "Annual Receipts" to the fund include grants made by the federal government and state legislative appropriations if any, but does not include program income.

(2) "Program Income" is defined as fees and interest income generated by participation in the program.

R990-12-4. Credit Advisory Committee.

The Division will establish a Credit Advisory Committee. Utah financial institutions may submit an application of a small business borrower for private funding to the Committee. The Committee will evaluate the application and make recommendations to the Division on the size, scope, and loan or loan loss reserve participation amount suitable for the applicant. Additionally, the Committee will advise on application processes, underwriting criteria and procedure of the Fund to ensure that program objectives are met.

R990-12-5. Eligibility.

(1) Only those applications for funding assistance which are submitted by an eligible applicant for an eligible project shall be considered by the Division.

(2) Eligible applicants include Small Businesses (defined as having no more than 750 employees), which:

(a) applied for a credit product and were denied by a financial institution; and

(b) the financial institution sponsors the application to the Fund as described in the Application Procedures; or

(c) directly respond to a specific Request for Applications (RFA) published by the Division.

R990-12-6. Application Requirements.

(1) Applications shall be submitted on forms published, and in accordance with the procedures outlined by the Division with the advice of the Committee. Completed applications which have been accepted for processing will be placed on the next available Committee agenda for review and recommendation.

(2) The primary process for submitting an application to the fund is as follows:

(a) An Eligible Small Business must apply for a credit product at a financial institution which has a signed a State Small Business Credit Initiative Program Fund Participation Agreement with the Division.

(b) The small business applicant must have been deemed ineligible for current banking products offered by the financial institution.

(c) The participating financial institution will submit an application form, in addition to the relevant documentation and underwriting criteria, to the Division and specify the type, amount and reason for a loan participation or loan guarantee on the transaction.

(d) The Committee at its discretion may interview parties involved in the transaction to further clarify any information as part of the application review prior to issuing a recommendation to the Director.

(3) An applicant may respond to a specific Request for Applications issued by the Division on forms prescribed by the Division.

R990-12-7. Application Review Procedures.

(1) The Committee will review applications and make recommendations on whether to fund a loan or loan guarantee at regularly scheduled review meetings as published on the Division's website.

(2) The process for review of new applications for loans and loan guarantees shall be as follows:

(a) Submission of an application, on or before the applicable deadline to the Division program staff for technical review and analysis.

(b) Incomplete applications will be held by the staff pending submission of required information.

(c) Complete applications accepted for processing will be placed on the next available review agenda.

(d) At the review the Committee may either recommend:

(i) denial of the application;

(ii) the issuance of the requested loan or loan guarantee

(iii) a modified issuance of a loan or loan guarantee

(iv) further analysis of the viability of the project through further collection of documentation prior to issuing a decision on the funding request.

(e) Final recommendations of the Committee on issuance or denial of applications will be forwarded to the Director.

(f) The Director may issue loans or loan guarantees after reviewing the recommendation of the Committee.

R990-12-8. Loan Loss Reserve Fund.

There is created a loan loss reserve fund to be used to secure the loan guarantees issued by the Division. The Division may issue guarantees in an amount up to a ten to one ratio of balances within the loan loss reserve fund. Neither the State nor the Division are liable for guarantees issued beyond the balance of the reserve fund. Each participating financial institution shall be informed of this stipulation via a participation agreement with the Division prior to participating in the loan guarantee program.

R990-12-9. Procedures for Electronic Meetings.

(1) These provisions govern any meeting at which one or more members of the Committee or one or more applicants appear telephonically or electronically pursuant to Section 52-4-207.

(2) If one or more members of the Committee or one or more applicants or sponsors can not attend a regularly scheduled Committee meeting in person, that member, applicant or sponsor may participate in the meeting electronically or telephonically.

KEY

small business loans, loan guarantees

Date of Enactment or Last Substantive Amendment

September 12, 2012

Notice of Continuation

September 12, 2017

Authorizing, Implemented, or Interpreted Law

35A-8-1201 et seq.


Additional Information

Contact

For questions regarding the content or application of rules under Title R990, please contact the promulgating agency (Workforce Services, Housing and Community Development). A list of agencies with links to their homepages is available at http://www.utah.gov/government/agencylist.html or from http://www.rules.utah.gov/contact/agencycontacts.htm.