Funds may be loaned by the authority to a borrower under the
Equipment Shed Loan Program if the borrower is engaged in agricultural
operations in this state and will use the borrowed funds for construction of a
new structure on a farm in this state to protect the borrower's equipment
resulting in borrower receiving substantial economic benefits and improved
operational efficiencies.
(a)
Applicants are subject to a $50 loan application fee for each application
submitted.
(b) All borrowers
seeking loans under this rule are subject to credit checks by the
authority.
(c) All structures
proposed to be built with funds loaned under this rule must meet certain
standard criteria as determined by the authority and all building plans for any
proposed project must be approved by an authority representative prior to award
of a loan pursuant to this program.
(d) $35,000 is the maximum amount that will
be loaned under this rule.
(e) An
inspection of applicant's agricultural operation by an authority representative
is required prior to loan approval.
(f) All amounts borrowed under this rule
shall be repaid to the authority, plus interest at the applicable rate, no
later than 5 years from the date loan proceeds are issued to the
borrower.
(g) Interest charged on
funds borrowed under this rule is 3.5%.
(h) All borrowed amounts must be full
collateralized.
(i) All loans
issued pursuant to this rule require personal guaranty by an individual with
sufficient assets to fully satisfy the borrowed amount in the event of
default.
(j) The authority reserves
the right to deny any loan application.
Notes
Ala. Admin. Code r. 108-1-3-.03
Adopted by
Alabama
Administrative Monthly Volume XXXV, Issue No. 07, April 28, 2017,
eff. 5/20/2017.
Author: Alabama Agricultural Development
Authority
Statutory Authority:
Code of Ala.
1975, ยง
2-3A-7.
