1. (a) Application forms. A commercial lender seeking a loan guarantee from the Authority must use the application forms provided by the Authority and must include all information requested.
2. (b) Submission of application. All applicants are required to obtain a preliminary commitment from a commercial lender before applications will be accepted by the Authority. Staff will be available prior to submission of the qualified application to assist applicants and commercial lenders in determining project eligibility.
3. (c) Staff review. Staff will review the application for completeness and will notify the commercial lender of any additional information required. When all required information has been received, staff will conduct a credit review, evaluate the project and examine its benefits for Texas agriculture, economic growth and job creation in the state.
4. (d) Board or commissioner review. The staff shall submit a credit memorandum to the board or the commissioner, which shall include a recommendation for approval or denial for each qualified application received by the program. The board, or the commissioner upon delegation of authority by the board, will approve or deny the qualified application. The determination for the application will be based upon the information presented in accordance with the Act and this chapter, the credit memorandum, and the factors set forth in §58.054 of the Act, as implemented by this chapter. The board or the commissioner may impose additional terms and conditions as part of its approval.
5. (e) Notification of approval. Upon conditional approval of the qualified application, staff will notify the commercial lender and the applicant in writing identifying the terms and conditions of the loan guarantee. Certain time limits will be set regarding the acceptance of loan commitments by the applicant and the commercial lender; however, in no event shall the time period exceed 30 days from date of notification unless previously approved. The commercial lender will prepare the written agreements and documents necessary to close the loan in accordance with the terms and conditions set forth in the notice of conditional approval. The Authority staff will send the commercial lender and the applicant final notice of guarantee approval after review of the closing documents. The commercial lender will disburse the loan according to the terms and conditions of the note and/or loan agreement.
6. (f) Denial of application. If the application is denied, the Authority staff will notify the eligible applicant and the commercial lender in writing, identifying the reasons for denial. Applicants who have been denied may re-apply to the loan guarantee program.
7. (g) Providing false information. An applicant who knowingly provides false information in an application shall be disqualified from obtaining a loan guarantee under the program and shall be liable to the Authority and the department for any expense incurred by the Authority or the department as a result of the falsity. If the falsity is discovered after approval of a loan guarantee, the falsity may constitute grounds for revocation of the guarantee, and the Authority shall be entitled to exercise all its rights under the loan documents.
8. (h) Reporting to the board. Staff shall report to the board at each board meeting the status of loans of the Authority and any applications approved by the commissioner under the program since the last meeting of the board.

Source Note:The provisions of this §30.6 adopted to be effective November 15, 1993, 18 TexReg 7539; amended to be effective March 10, 1994, 19 TexReg 1375; amended to be effective July 1, 1996, 21 TexReg 5686; amended to be effective September 16, 1997, 22 TexReg 9243; amended to be effective September 28, 1999, 24 TexReg 8150.