04 NCAC 01N .0106. PROCEDURES FOR THE BUSINESS RECOVERY LOAN PROGRAM

(a)  Applicants shall apply for loans through the BRAC administered by the SBTDC in cooperation with the Department of Commerce.

(b)  The SBTDC shall work with applicants to assist them in preparing the needed documentation to apply for a disaster assistance loan.

(c)  Loan applications shall be accepted at all of the regional offices maintained by the SBTDC across North Carolina.

(d)  Applicants must meet the eligibility requirements set forth in Paragraphs 04 NCAC 01N .0102(a) and (c), must show cash flow coverage of at least 80 percent, must agree to quarterly business counseling, must document losses that resulted from the hurricane(s) by providing SBA loss verification forms or insurance adjuster forms and photographs, as applicable, must provide such other documents as are requested by the SBTDC for evaluation of the application, and must  provide loan guarantees from parties that own more than 20 percent of the applicant.  The SBTDC shall consider an applicant's responsible credit history evidenced by credit reports showing repayment on previous loans.

(e)  Upon receipt of a completed application, a loan decision shall be made by the senior management team of the SBTDC within three business days.  If approved, the decision shall be transmitted to the disbursing bank.  The bank shall disburse the loan after the bank receives the properly executed note and loan package.

(f)  Should the SBA approve a loan upon reconsideration, the borrower shall repay the principal amount of the loan provided by the State of North Carolina pursuant to the rules in this Subchapter.

 

History Note:        Authority G.S. 143B-430(c); 143B-431(a)(1); S.L. 2005-1;

Emergency Adoption Eff. April 25, 2005;

Temporary Adoption Eff. July 29, 2005;

Eff. January 1, 2006.