§ 6-34-11 — Opportunity enterprise loans; terms; repayment

A. The authority shall receive and review applications for opportunity enterprise loans. The authority may make loans to opportunity enterprise partners if: (1) funding is available; (2) the opportunity enterprise partner meets credit and identification criteria, as determined by the authority; (3) the opportunity enterprise partner certifies that the proceeds of the loan will be used for an enterprise development project; and (4) the opportunity enterprise partner meets any other requirement for an opportunity enterprise loan. B. The opportunity enterprise partner shall provide the authority with ongoing information requested by the authority. C. Opportunity enterprise loans shall be made for loan periods of no more than thirty years, as determined by the authority. The loans shall bear an annual interest rate of no less than zero percent. D. Beginning no later than the third anniversary of the funding date of the loan, payment on the outstanding principal of the loan shall be due on a schedule determined by the authority for the remainder of the loan period. E. Receipts from the repayment of opportunity enterprise loans shall be deposited in the opportunity enterprise revolving fund. F. No provision in an opportunity enterprise loan or the evidence of indebtedness of the loan shall include a penalty or premium for prepayment of the balance of the indebtedness. G. The authority may provide a guarantee to a federally insured financial institution on behalf of a person who would otherwise be eligible as an opportunity enterprise partner; provided that the proceeds of any guaranteed loan are used for an enterprise development project. A guarantee pursuant to this subsection shall be provided subject to terms approved by the board.

Legislative History

Laws 2022, ch. 57, § 11; 2024, ch. 8, § 9.