Wyoming sets new rules for providing business loans for large projects in the amount of USD 5-25 million

0
18

[ad_1]

From Brendan LaChance Jul 9, 2021

The refurbished Wyoming State Capitol Building on the night of February 11, 2020 in Cheyenne. (Dan Zepeda, Oil City File)

CASPER, Wyoming. Wyoming Business Council announced on Friday that new rules have been set for the Large Economic Development Project Lending Program.

Businesses will be able to apply for loans of $ 5-25 million under the program to “finance the purchase, construction and installation of buildings or equipment that will add economic value to goods, services or resources in Wyoming.”

The Wyoming Treasurer is authorized to make loans under the program to proposed or existing Wyoming businesses if the project meets the criteria under the program rules.

The article continues below …

Eligibility includes that the proposed or existing business will:

  • hire people within the state
  • provide services in the state
  • use resources in the state or otherwise increase the economic value of goods, services or resources in the state

For eligible projects, the following conditions apply:

  • Minimum interest rate 1%
  • Loan term limits determined by the cash flow of the business; do not exceed the “useful life of the assets financed”
  • Equity: Applicants must contribute at least 25% of the requested loan or loan guarantee.
  • Security: “The first security interest in the project, including a pledge of proceeds from the operation plus a mortgage on the object or a security interest in equipment pledged as collateral”
  • Commissions: A commission is charged for the issuance of the loan or the loan guarantee amount equal to 1% of the total loan amount.

Applicants must apply to the Governor, State Treasurer, and the Wyoming Business Council.

“Eligible projects generally must consist of a well-planned, well-defined business endeavor for the applicant, and the project must have a set start and end date,” the WBC said in a statement. “A loan or loan guarantee under this Agreement shall not be used to finance past selling or construction expenses.”

“Expenses to be reimbursed from the funds of the loan after the completion of the relevant documents for the loan or loan guarantee, must be returned no earlier than the submission of the loan or loan guarantee application to the Governor. Funding under this program should not serve as a refinancing mechanism or otherwise serve as a substitute for a loan or loan guarantee for the applicant’s current creditors. ”

The full rules of the new program are available online.

The WBC also manages other loan programs, which are summarized in this chart:

[ad_2]

Source link