PURPOSE: This rule sets forth the fee structure and the requirements which the applicant must meet to be an eligible borrower for a loan under this program.

Editor’s Note: The form mentioned in this rule follows 2 CSR 100-4.020.

1. (1) The authority’s small business loan program is available for manufacturing, commercial and industrial companies qualifying as small businesses. Only manufacturing firms and first-time farmers qualify for taxexempt financing. Commercial and industrial companies are eligible for taxable bond financing. (Refunding tax-exempt bonds may be issued for commercial and industrial companies if the original bonds were issued prior to August 1986.)

2. (2) Eligible projects for tax-exempt financing include:

   1. (A) The acquisition, construction, improvement or rehabilitation of agricultural property (land, buildings, structures, improvements, equipment and breeding livestock) for first-time farmers; and
   2. (B) The depreciable property to be used for manufacturing or processing facilities owned or to be acquired by a small business.

3. (3) Eligible projects for taxable financing include:

   1. (A) The acquisition, construction, improvement or rehabilitation of agricultural property (buildings, structures, improvement, equipment and breeding livestock) for those farmers who do not qualify for treatment as a first-time farmer; and
   2. (B) The acquisition, construction, improvement or rehabilitation of depreciable property, owned or to be acquired by a small business for commercial and industrial facilities.
4. (4) The Internal Revenue Code places a loan limit of ten (10) million dollars for taxexempt financing to manufacturers and a two hundred thousand dollar ($200,000) limit for tax-exempt financing to first-time farmers. There is no limit on loans placed on taxable financing. However both tax-exempt and taxable financing will be subject to borrowing limits set by the borrowers’ participating lenders.
5. (5) The authority will purchase or take up to one hundred percent (100%) participation in each small business development loan.
6. (6) The authority will receive a nonrefundable two hundred dollar ($200) application fee, submitted with the application.
7. (7) The participating lender or the placement agent will collect from the participating borrower(s) and pay over to the authority at the loan closing an authority fee to defray expenses incurred by the authority in processing and administering the small business development loan program an amount as determined by the authority not to exceed a sum equal to one and one-half percent (1 1/2%) with a minimum fee of five hundred dollars ($500).
8. (8) At the time of the purchase of a small business loan by the authority, the participating lender and participating borrower(s) shall certify that the participating borrower(s) is
9. (are) in compliance with the Act and with rules of the small business development loan program; that the participating borrower(s) cannot obtain a loan on equivalent terms from conventional credit markets or other sources without the purchase or participation of the authority; that the participating borrower(s) is
10. (are) an individual(s) residing in this state; and that the project being financed is located within the state.

AUTHORITY: section 348.075, RSMo 1986.* Original rule filed Aug. 13, 1991, effective Jan. 13, 1992. *Original authority: 348.075, RSMo 1981, amended 1995, 1997.