CASPER, Wyo. — The Wyoming Business Council announced on Friday that new rules for an “Economic Development Large Project Loan Program” have been established.
Businesses will be able to apply for $5-25 million loans under the program to “finance the purchase, construction, and installation of buildings or equipment that will add economic value to goods, services, or resources within the state of Wyoming.”
The Wyoming State Treasurer is authorized to lend funding under the program to proposed or existing Wyoming businesses if the project is eligible under the program’s rules.
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Eligibility requirement include that the proposed or existing business will:
- employ people within the state
- provide services in the state
- use resources in the state or otherwise add economic value to goods, services or resources within the state
For eligible projects, the following terms will apply:
- Minimum of 1% interest rate
- Loan term limits determined by business’ cash flow; not to exceed “useful life of the assets being financed”
- Equity: Applicants must contribute at least 25% of the request loan or loan guarantee
- Security: “A first security interest in the project including pledge of revenues from the operation plus a mortgage on the facility or security interest in equipment pledged as collateral”
- Fees: Loan origination fees or loan guarantee amounts equal to 1% of the the total loan amount will be charged
Applicants are required to submit applications to the governor, the state treasurer and the Wyoming Business Council.
“Eligible projects must generally consist of an applicant’s prospectively planned, well-defined business endeavor, and the project shall have a set beginning and completion date,” the WBC says. “A loan or loan guarantee hereunder shall not be used to fund past business or construction expenditures.”
“Expenses eligible for reimbursement from loan proceeds following execution of applicable loan or loan guarantee documents shall relate back no earlier than the submission of the request for the loan or loan guarantee to the Governor. Financing under this program shall not serve as a refinance mechanism or otherwise serve to substitute the loan or loan guarantee for an applicant’s current lenders.”
The WBC also administers other loan programs, which are summarized in this chart: