§ 5-28-18-11 — Loan conditions

Indiana § 5-28-18-11

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 28: INDIANA ECONOMIC DEVELOPMENT
• Ch. 18: Small Business Development Fund

Text

A loan from the fund to a local board is
subject to the following conditions:
(1) The local board may use the loan from the fund only to make
and service grants, equity investments, loans, and loan guarantees
to persons who are establishing or operating businesses in
Indiana. However, the local board may not spend any part of the
loan from the fund to defray the expenses of servicing grants,
loans, and loan guarantees unless that expenditure is specifically
authorized in the loan agreement with the corporation.
(2) The term of the loan may not exceed twenty (20) years.
(3) The loan must require the local board to provide matching
funds in an amount determined by the corporation. However, the
total of the loan plus the matching funds must be at least:
(A) one million dollars ($1,000,000) for a local investment pool
established under section 12 of this chapter; or
(B) five hundred thousand dollars ($500,000) for a local
opportunity pool established under section 13 of this chapter.
(4) The corporation may forgive or defer payment of all or part of
the interest and principal on the loan.
(5) The loan agreement must require the local board, through its
staff or consultants, to perform the following duties with respect
to recipients of financial assistance from the local pool:
(A) Provide training in business and financial management
techniques.
(B) Oversee the fiscal operations of the recipients of financial
assistance for at least one (1) year following the receipt of that
assistance.
(C) Provide fiscal management assistance to recipients of
financial assistance when necessary for at least one (1) year
following the receipt of the assistance, including assistance in
the preparation and filing of federal and state tax returns.
(6) The local board must make a report concerning the local pool
to the corporation before September 1 of each year. The report
must include detailed information concerning the structure,
operation, and financial condition of the local pool.
(7) Any other conditions that the corporation considers
appropriate.

Legislative History

As added by P.L.4-2005, SEC.34.