Oklahoma § 62-88.5 - Dissemination of information and loan packages Completing loan package - Acceptance and review of loan applications

§ 62-88.5. Dissemination of information and loan packages Completing loan package - Acceptance and review of loan applications

- Conditions of loans - Forwarding loan packages to State Treasurer

and Board.

Oklahoma Statutes - Title 62. Public Finance

A. The State Treasurer and the Department of Commerce are

hereby authorized to disseminate information and to provide small

business linked deposit loan packages to the lending institutions

eligible for participation under this act.

B. The small business linked deposit loan package shall be

completed by the borrower before being forwarded to the lending

institution for consideration. Any technical assistance in

completing such loan package shall be provided by the State

Treasurer.

C. An eligible lending institution that desires to receive a

small business linked deposit shall accept and review applications

for loans from eligible participants. The lending institution shall

apply all usual lending standards to determine the creditworthiness

of each eligible participant. Loans under this act shall conform to

the following conditions:

1. Maximum loan amounts under the Oklahoma Small Business

Linked Deposit Act shall:

a.

not exceed One Million Two Hundred Thousand Dollars

($1,200,000.00) for an eligible small business,

b.

not exceed Six Million Dollars ($6,000,000.00) for an

eligible industrial park or any public trust

authorized in accordance with Section 176 of Title 60

of the Oklahoma Statutes engaged in industrial

development as determined by the Oklahoma Linked

Deposit Review Board. Such public trusts are limited

to fifteen percent (15%) of the total available funds

and a nonrenewable term not to exceed six (6) months

unless their purpose is to make package passthrough

loans to other private recipients for industrial

development purposes. Loans made by an eligible trust

cannot exceed the interest rate established by this

act. Any recipient of a loan through an eligible

trust must meet the criteria of this act to receive a

small business linked deposit loan;

2. An eligible participant shall certify on the loan

application that the reduced rate loan will be used exclusively to

create new jobs or preserve existing jobs and employment

opportunities in accordance with the purpose of this section;

3. Only one linked deposit loan shall be made and be

outstanding at any time to any eligible participant; provided that

the linked deposit loan may be refinanced;

4. No linked deposit loan shall be approved for any otherwise

eligible participant when fifty percent (50%) or more of the

interest in or control of such otherwise eligible participant is

owned directly or indirectly by a person who owns directly or

indirectly fifty percent (50%) or more of or controls another

participating eligible participant;

Oklahoma Statutes - Title 62. Public Finance

5. No loan shall be made to any officer or director of the

lending institution making the loan or to any entity in which any

such officer or director maintains a controlling interest;

6. No loan shall be made to any employee of the State

Treasurer's office or members of the Board or to any entity in which

any such officer or director maintains a controlling interest;

7. The criteria for the amount of loans used for refinance

shall be established by the Oklahoma Linked Deposit Review Board to

reflect legislative intent to tighten previous criteria on

refinancing;

8. The criteria for the amount of loans per job ratio shall be

established by the Oklahoma Linked Deposit Review Board to reflect

legislative intent to maximize the program in terms of the jobs

created or saved;

9. Whoever knowingly makes a false statement concerning a

linked deposit loan application shall be prohibited from entering

into the linked deposit loan program; and

10. Linked deposits may be made for any maturity considered

appropriate by the State Treasurer not to exceed two (2) years and

may be renewed for up to an additional three renewals not to exceed

two (2) years each at the discretion of the State Treasurer with the

approval of the lending institution. No renewals will be allowed

unless the amount of principal has been reduced by a minimum of five

percent (5%) and all interest paid to date from the time of the

prior loan or renewal. However, at renewal the Oklahoma Linked

Deposit Review Board may approve an increase in the amount of

principal, if the business is expanding and additional jobs will be

created. An approval of such an increase in principal will not

extend the maximum years of participation in the program. In

addition, loans made to eligible participants where the loan is to

be used within an enterprise zone may be made for the maturity date

of three (3) years with two additional renewals. The first renewal

may be for up to three (3) years and the last renewal may be for up

to two (2) years. Loans made to be used within Priority Enterprise

Zones may be made with a maturity date of five (5) years and have

another three (3) years of renewal. Interest shall be paid at the

times determined by the State Treasurer. The State Treasurer may

place a small business linked deposit with an eligible lending

institution or decline to do so based on the cash flow needs of the

state, the security of state funds, investment needs of the state

and the ratio of state funds deposited to jobs which would be

sustained or created.

D. In considering which eligible participants to include in the

small business linked deposit loan package for reduced rate loans,

the eligible lending institution shall give priority to the economic

needs of the area in which the business is located and other factors

it considers appropriate to determine the relative financial need of

Oklahoma Statutes - Title 62. Public Finance

the business including those criteria set forth in the Community

Reinvestment Act of the United States. Location in an enterprise

zone shall be evidence of the economic needs of the area.

E. The eligible lending institution shall forward to the State

Treasurer a small business linked deposit loan package in the form

and manner prescribed and approved by the State Treasurer. The

package shall include information regarding the amount of the loan

requested by each eligible participant, the number of jobs to be

created or sustained, an estimate of the number of zone residents to

be employed in such jobs where the loan is to be used in an

enterprise zone and such other information regarding each business

the State Treasurer and the Board requires. The institution shall

certify that each applicant is an eligible participant, and shall,

for each business, certify the present borrowing rate applicable to

each specific eligible small business.

F. Upon receipt of a completed small business linked deposit

loan package, the State Treasurer shall forward the loan package to

the Board, Oklahoma Tax Commission and Oklahoma Employment Security

Commission. The Board shall review the small business linked

deposit loan package to determine if said package is qualified under

this act. Within ten (10) days of receipt of the loan package, the

Oklahoma Tax Commission and the Oklahoma Employment Security

Commission shall determine and certify with the Board whether or not

the applicant is in good standing. The Board shall make a

recommendation concerning the package at the next regularly

scheduled Board meeting or at a special Board meeting, after receipt

of the responses from the Oklahoma Tax Commission and the Oklahoma

Employment Security Commission. No applicant will be approved

without certification of good standing with the Oklahoma Tax

Commission and Oklahoma Employment Security Commission. The Board

shall return the package to the State Treasurer with a written

recommendation of approval or rejection. If the Board recommends

rejection, the written recommendation shall include reasons for said

rejection. The Board shall forward a copy of its rejection notice

to the lending institution and the borrower. The State Treasurer

shall keep a chronological list of applications forwarded by the

Board for approval or rejection.

Added by Laws 1988, c. 183, § 5, eff. July 1, 1988. Amended by Laws

1990, c. 321, § 8, emerg. eff. May 30, 1990; Laws 1991, c. 334, § 4,

eff. Sept. 1, 1991; Laws 1995, c. 88, § 3, eff. July 1, 1995; Laws

1996, c. 81, § 1, eff. July 1, 1996; Laws 1998, c. 85, § 10, eff.

July 1, 1998; Laws 2010, c. 270, § 1, emerg. eff. May 14, 2010.