Loans can be obtained from WEC. All applicants for RLF funding will be required to complete a pre-application to determine eligibility and then a full application form. This second application must provide data which demonstrates that proposed projects are (1) economically feasible and (2) will provide benefits to rural areas, either through job creation or infrastructure improvements.
During the initial loan review, it will be determined if the project meets the goals of this program. If so, the required information will be obtained and the process of credit analysis of the project will begin.
Upon successful completion of the steps in the credit analysis and upon subsequent approval by the RLF Loan Committee, the loan will be closed by the RLF attorney, and all legal documents will be properly filed and recorded. RLF staff will maintain financial management systems and retain financial records in accordance with 7 CFR Part 3015, uniform Federal Assistance Regulations.
The RLF records will include an accurate accounting and source documentation to support each transaction involving the RLF. In addition, annual performance reports will be prepared for each project comparing actual accomplishments during the reporting period to the objectives established for the project. The RLF Program commits to the establishment of other required reporting procedures in accordance with USDA regulations.
If real property or other fixed assets are pledged to the RLF by the borrower, professional appraisals will be required on all loans. A list of approved appraisers will be compiled in the service area and an approved appraiser list will be chosen by the RLF Loan Committee. WEC will be responsible for securing an appraisal from the borrower to establish the value of assets pledged.
Upon recommendation of a loan by the RLF Loan Committee and full Board approval, a loan commitment letter shall be mailed to the applicant. The applicant will have 10 working days from the date of the commitment letter to accept the terms and requirements of the loan.
The RLF staff will have 30 calendar days from the date of approval by the Loan Committee to work with the applicant to develop loan documents to meet the terms of the loan and execute the applicable closing documents. In the event the RLF staff cannot execute the loan closing within 30 calendar days, the RLF Loan Committee shall have the discretion to authorize an additional 30 calendar days.
The decision will be based on the particular circumstances of the project. Prior to loan closing, the RLF staff shall ensure that the specific closing conditions have been met and all documents related to closing have been reviewed. In the event the RLF staff is unable to close the loan within 60 calendar days, then the RLF commitment to fund the loan shall be withdrawn.
The RLF loan closing will be handled by the RLF attorney and the RLF administrator where all terms of the loan including repayment terms will be discussed in detail. An amortization schedule will be furnished to the applicant with scheduled principal and interest costs for the term of the loan. All closing costs will be the responsibility of the applicant. All applicable loan closing documents will be recorded in the appropriate place of filing by the RLF attorney. All original loan documents shall be housed in the RLF administrative offices in a safe and secure location.
RLF loan proceeds will be disbursed from the RLF account with the presentation of acceptable documentation as required by the loan documents. The RLF administrator will be authorized to disburse RLF funds upon presentation of proper documentation. For security purposes, 2 signatures will be required on any disbursement checks as authorized by the RLF Loan.