Wyoming sets new rules to make loans of $ 5 million to $ 25 million available to businesses for large projects
CASPER, Wyoming – The Wyoming Business Council announced on Friday that new rules for a “loan program for major economic development projects” had been established.
Businesses will be able to apply for loans of $ 5 million to $ 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 the country. ‘State of Wyoming’.
The Wyoming State Treasurer is authorized to lend funds under the program to proposed or existing Wyoming businesses if the project qualifies under the program rules.
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The eligibility conditions include that the proposed or existing business:
- employ people within the state
- provide services in the state
- use state resources or add economic value to goods, services or resources within the state
For eligible projects, the following conditions will apply:
- Minimum interest rate of 1%
- Loan term limits determined by business cash flow; not exceed the “useful life of the financed assets”
- Equity: applicants must contribute at least 25% of the requested loan or loan guarantee
- Security: “A first security on the project comprising the pledge of operating income plus a mortgage on the installation or a security on the equipment given as security”
- Fees: Loan origination fees or loan guarantee amounts equal to 1% of the total loan amount will be charged
Applicants are required to submit applications to the governor, state treasurer, and Wyoming Business Council.
“Eligible projects should generally consist of a well-defined and prospectively planned business venture of an applicant, and the project should have a defined start and end date,” says the WBC. “A loan or loan guarantee hereunder shall not be used to finance previous commercial or construction expenses. “
“The expenses eligible for reimbursement of the loan proceeds after execution of the applicable loan or loan guarantee documents must be reported as soon as possible when the loan or loan guarantee application is presented to the Governor. Funding under this program must not be used as a refinancing mechanism or otherwise used to replace the loan or loan guarantee for an applicant’s current lenders.
The WBC also administers other loan programs, which are summarized in this table: