PURPOSE: This rule sets forth the procedure for the approval of loans to be purchased under this program.

1. (1) A participating lender and participating borrower(s) will complete and forward the application to the authority.
2. (2) Upon receipt of the executed participating borrower documents, the authority shall determine whether the participating borrower(s) and the participating lender qualify under the Act, and whether the loan constitutes a small business loan under the Act. After that, the authority will deliver to the Development Authority

participating borrower(s) and the participating lender a conditional approval describing the terms of the small business loan proposed to be purchased by the authority, subject to the availability of bond proceeds.

1. (3) Following receipt of the conditional approval and in accordance with its terms, the participating lender shall deliver the executed participating lender documents to the authority.
2. (4) On the loan purchase date, the authority will sell the bond and direct the participating lender to fund the small business loan. In addition, on the loan purchase date, the authority will simultaneously assign and deliver the note, the loan and security agreement, and the guaranty to the participating lender as original purchaser of the bond.

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.